Dutch VAT refund for a Canadian real estate investment company

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The client's problem

A Canadian based global real estate investment company received an invoice for expenses relating to an investment in real estate in the Netherlands. Expenses in relation to Dutch real estate are as a main rule subject to Dutch VAT irrespective where the recipient of the invoice resides. The issuer of the invoice (our client) had to calculate 21% of Dutch VAT on the invoice. The Dutch VAT amount of the invoice was quite substantial.

Our solution

We proactively informed the global real estate investment company that they were entitled to a refund of the Dutch VAT paid on the invoice. The global real estate investment company subsequently asked us to assist them with claiming the refund of Dutch VAT.

What did we do?

We registered the Canadian company for Dutch tax purposes first. Subsequently, the Dutch tax authorities granted the global real estate investment company a Dutch tax registration number. After the issuance of the Dutch tax registration number, we were able to apply for a refund of the Dutch VAT paid.

Current situation

The Dutch tax authorities refunded all Dutch VAT paid by the global real estate investment company. Needless to say, both the real estate company as well as our client (who was the issuer of the invoice) were very happy with the outcome. We made new friends in Toronto.