Article 23 VAT Exemption: A Strategic Advantage for Non-EU and E-Commerce Companies Entering the EU

Learn how the Dutch Article 23 VAT exemption allows non-EU and e-commerce companies to defer import VAT when expanding into the EU via the Netherlands.

Introduction

Expanding into the European Union offers significant commercial opportunities, particularly for non-EU and e-commerce companies seeking access to a large and integrated consumer market. However, EU expansion also introduces new regulatory and tax obligations—most notably import VAT.

For many international businesses, import VAT can create immediate cash-flow pressure at the moment goods enter the EU. The Netherlands offers a practical solution through the Article 23 VAT exemption, a mechanism that allows eligible companies to defer import VAT rather than paying it upfront.

At TAMM Solutions, we regularly assist international companies with EU market entry through the Netherlands, combining VAT structuring, entity setup, and ongoing compliance into a single, coordinated approach.

What Is the Article 23 VAT Exemption?

Article 23 of the Dutch VAT Act allows businesses to defer the payment of import VAT on goods imported into the Netherlands. Instead of paying VAT at the border, the VAT is declared and reclaimed in the same Dutch VAT return.

In practical terms, this means:

• No upfront payment of import VAT

• No negative cash-flow impact at import

• VAT is accounted for administratively rather than financially

For companies importing goods into the EU for resale, fulfillment, or distribution, this can result in significant liquidity and operational advantages.

Why Article 23 Is Especially Relevant for Non-EU Companies

Non-EU businesses expanding into Europe often face an additional hurdle: import VAT must usually be paid immediately when goods enter the EU, even if those goods are not yet sold.

By using the Netherlands as an EU entry point and applying Article 23 correctly, non-EU companies can:

• Avoid pre-financing large VAT amounts

• Centralize EU imports through a single jurisdiction

• Simplify VAT reporting and compliance

This makes the Netherlands a preferred logistics and tax gateway for international businesses entering the EU market.

Article 23 and E-Commerce Business Models

Article 23 is particularly attractive for e-commerce companies that:

• Import goods in bulk into the EU

• Store inventory in Dutch or EU warehouses

• Sell via their own webshop or online marketplaces

• Use fulfillment or third-party logistics providers

Without Article 23, import VAT can quickly accumulate into substantial upfront costs. With Article 23 in place, VAT is neutralized at import and accounted for in periodic VAT filings, improving scalability and predictability for growing e-commerce operations

Who Can Apply for Article 23?

To apply the Article 23 VAT exemption, a company must generally:

• Be registered for Dutch VAT

• File periodic VAT returns in the Netherlands

• Maintain proper VAT and import administration

Contrary to common assumptions, a Dutch BV is not always required. Depending on the structure, non-EU companies may operate through:

• A Dutch entity

• A permanent establishment

• A VAT registration with fiscal representation

Choosing the correct structure is essential, as incorrect setup can lead to denied exemptions, audits, or retroactive VAT liabilities.

Who Can Apply for Article 23?

To apply the Article 23 VAT exemption, a company must generally:

• Be registered for Dutch VAT

• File periodic VAT returns in the Netherlands

• Maintain proper VAT and import administration

Contrary to common assumptions, a Dutch BV is not always required. Depending on the structure, non-EU companies may operate through:

• A Dutch entity

• A permanent establishment

• A VAT registration with fiscal representation

Choosing the correct structure is essential, as incorrect setup can lead to denied exemptions, audits, or retroactive VAT liabilities.

The Role of the Dutch Tax Authorities

Article 23 operates under supervision of the Dutch Tax and Customs Administration. Approval is not automatic and relies on:

• Accurate VAT registration

• Correct customs declarations

• Consistent VAT reporting

Errors in customs documentation or VAT filings can jeopardize the exemption. For this reason, Article 23 should be implemented as part of a broader compliance strategy rather than treated as a standalone tax benefit.

Common Pitfalls to Avoid

International companies frequently encounter issues when:

• Importing goods before Article 23 is properly activated

• Using logistics providers without aligned VAT processes

• Mixing EU and non-EU VAT obligations incorrectly

• Underestimating ongoing Dutch compliance requirements

These issues can result in delayed refunds, blocked shipments, or unexpected tax exposure—outcomes that are avoidable with proper planning and professional oversight.

Why the Netherlands Is a Preferred EU Entry Point

Beyond Article 23, the Netherlands offers:

• Advanced logistics infrastructure (ports, airports, warehousing)

• A business-friendly regulatory environment

• High English proficiency

• A stable and predictable legal system

For non-EU and e-commerce companies, the Netherlands provides an efficient and scalable base for EU operations when structured correctly from the outset.

How TAMM Solutions Supports International Expansion

As a boutique Dutch legal and corporate consulting firm, TAMM Solutions supports international companies with:

• Dutch entity formation and structuring

• VAT registration and Article 23 implementation

• Legal and financial administration

• Tax compliance coordination

• Ongoing corporate and regulatory support

Our integrated approach ensures that VAT planning, customs processes, and corporate structure are aligned—reducing risk while supporting long-term growth.

Frequently Asked Questions

Is Article 23 available to non-EU companies? Yes, provided the company is properly registered for Dutch VAT and meets administrative requirements.

Do I need a Dutch company to use Article 23? Not always. The correct structure depends on your business model and logistics setup.

Does Article 23 eliminate VAT? No. It defers payment of import VAT by accounting for it in the VAT return instead of paying it upfront.

Can Article 23 be used with fulfillment warehouses? Yes, if VAT and customs processes are correctly aligned.

Is Article 23 suitable for high-volume e-commerce? Yes. It is commonly used by scalable e-commerce operations importing goods into the EU.

Conclusion & Next Steps

For non-EU and e-commerce companies expanding into Europe, Article 23 VAT exemption can be a decisive advantage—improving cash flow, simplifying imports, and supporting scalable EU operations. However, the exemption only delivers value when implemented correctly within a compliant legal and tax structure.

Plan Your EU Entry with Confidence

If you are considering expanding into the EU via the Netherlands, a structured consultation can help determine the right setup for your business, including VAT, entity structure, and ongoing compliance.

Book an appointment with TAMM Solutions to discuss your EU expansion strategy.