How we helped a Dutch BV obtain a VAT number and a G-account

The client’s problem

An originally Irish group known for building data centers approached us. They told us that they had secured a project in the Netherlands and had established a BV (Dutch limited liability company) for this purpose. The Dutch contractor expected the BV to have a G-account (blocked account).

The new BV already had a Dutch registered address and a Dutch bank account. To the client’s disappointment, the BV was not issued a Dutch VAT number after its incorporation. This is because the tax authorities currently impose strict requirements regarding the physical presence (substance) of a company in the Netherlands before a VAT number is issued. And without a VAT number, a G-account could not be applied for here.

Our solution

It is possible for a foreign entrepreneur to apply for a Dutch VAT number in the Netherlands under certain conditions. Since the tax authorities believed the BV would have only a limited presence in the Netherlands, we therefore submitted a request to the tax authorities on behalf of the BV to obtain a Dutch VAT number as a foreign entrepreneur. Now that the BV met all the conditions for the application, the Dutch VAT number was issued within a few weeks. Subsequently, we were able to apply for the G-account on behalf of the client.

Current situation

The commercial impact of a G-account in combination with a Dutch limited liability company should not be underestimated. Our client can now easily demonstrate to its main contractor that it is a trustworthy company. Hence, it will be able to win new projects in the Netherlands.

We further support the client with its Dutch tax returns and other administrative obligations, ensuring the company remains in good standing.

Note: due to the privacy of our clients, this case study provided by TGS lime tree does not include any names, numbers and other sensitive information of our clients, partners and other parties involved.