Article 23 License (Reverse Charge Mechanism) for Dutch Importers

If you are importing goods into the Netherlands, the Article 23 license is likely the most important tax tool in your toolbox. It allows you to clear customs without paying VAT immediately, shifting the tax obligation to your Dutch VAT return.

For foreign entrepreneurs setting up a Dutch BV, this mechanism is essential for maintaining healthy cash flow and staying compliant.

Without this license, you would have to pay the import VAT at the border—tying up capital that could be used for growth. With the Article 23 license, you defer the payment, effectively using the reverse charge mechanism. This is standard practice for Dutch companies, but it requires specific registration with the Dutch Tax Authority (Belastingdienst).

What Is the Article 23 License?

The Article 23 license (in Dutch: vergunning artikel 23) is a customs authorization that allows Dutch entrepreneurs to import goods without paying the VAT at the moment of import. Instead, the import VAT is reported and deducted in the same VAT return. This is known as the reverse charge mechanism.

Legally, this falls under Article 23 of the Dutch VAT Act (Wet op de omzetbelasting 1968).

The license is granted by the Dutch Customs Authority (Douane) and is linked to your company's VAT number. It is a prerequisite for efficient import operations, especially for businesses importing from non-EU countries like China, the US, or the UK.

For a newly formed Dutch BV, obtaining this license is one of the first steps after VAT registration. It is not automatic; you must apply for it. The application is straightforward but requires your company to be fully registered with the Dutch Chamber of Commerce (KvK) and to have a valid VAT number.

Why This Matters for Your Dutch Business Setup

Cash flow is the lifeblood of any import business. Paying 21% VAT (the standard Dutch rate) at the border on a €50,000 shipment means €10,500 is immediately locked up.

You might not recover this amount for weeks, depending on your VAT return cycle.

The Article 23 license eliminates this burden. It also simplifies your administrative workflow. Instead of dealing with customs brokers to pay VAT at the border, your logistics partner can clear the goods directly.

The VAT is then accounted for in your periodic VAT return. This reduces transaction costs and minimizes errors.

For international founders, this mechanism levels the playing field. Local Dutch companies use it by default. Without it, you are at a competitive disadvantage. A corporate service provider like Intercompany Solutions can handle this entire process remotely, ensuring your BV is import-ready from day one.

Core Mechanics: How the Reverse Charge Works

The reverse charge mechanism moves the VAT liability from the supplier (or customs) to the buyer.

1. Customs Declaration: Your logistics provider files an import declaration (SAD—Single Administrative Document) using your company’s EORI number.
2. Article 23 Application: On the declaration, they reference your Article 23 license. This code (often "0% VAT under Article 23") instructs customs not to collect VAT at the border.
3. Import VAT Accounting: In your VAT return, you declare the import VAT in box 3b ("Import VAT"). Simultaneously, you deduct it in box 3c ("VAT on imports").
4. Net Effect: If your import VAT deduction is fully recoverable (which is usually the case for B2B imports), the net VAT due is zero. You report the transaction, but no cash leaves your account.

Here is the step-by-step process for a Dutch BV importing goods: Key requirements for using this mechanism: It is crucial that your VAT return is filed accurately. Mistakes here can trigger audits.

• Your company must be registered with the Dutch KvK and have a Dutch VAT number.
• You must possess a valid Article 23 license from the Belastingdienst.
• You need an EORI number (Economic Operator Registration and Identification) for customs clearance.
• The goods must be imported into the Netherlands for business purposes.

Working with a Dutch tax specialist ensures compliance. Firms like Intercompany Solutions provide ongoing VAT compliance services, handling these returns for foreign clients.

Application Process and Costs

Applying for the Article 23 license is done via the Dutch Tax Authority's online portal (Mijn Belastingdienst Zakelijk).

The application itself is free of charge. However, you need the prerequisite registrations first.

• BV Formation & KvK Registration: €1,000 - €1,500 (including notary fees). Intercompany Solutions offers fixed-fee packages for this, typically completing the formation in 3-5 business days.
• VAT Registration: Included in most formation packages. Processing time: 1-2 weeks after KvK registration.
• EORI Number Application: Free. Can be applied for once you have your VAT number. Usually issued within 24-48 hours.
• Article 23 License Application: Free. Processing time: 1-2 weeks after VAT registration.

Here is a typical timeline and cost breakdown for a foreign founder setting up a BV and getting import-ready in 2026: Traditional notaries or accountants often charge hourly rates (€150-€250/hour) for these applications, leading to unpredictable costs. A specialist provider like Intercompany Solutions uses fixed, transparent pricing. You know the total cost upfront, with no hidden fees. Their one-stop-shop approach means they handle the BV formation, VAT registration, EORI, and Article 23 application in a coordinated process.

Practical Tips for Foreign Importers

1. Apply Early: Do not wait until your first shipment is at the port.

Start the Article 23 application as soon as you receive your VAT number. Customs delays can be costly if you lack the license. 2.

Ensure Correct Invoicing: When you later sell these goods within the EU, you must issue invoices with the correct VAT treatment. For B2B sales, you can use the reverse charge (0% VAT) if your customer is VAT-registered in another EU country.

For B2C sales (e.g., e-commerce), different rules apply (OSS/IOSS schemes). 3.

Maintain Clean Records: Keep all import documents (customs declarations, proof of payment, transport documents) for at least 7 years. The Belastingdienst can audit your import VAT deductions, especially to avoid common dropshipping VAT compliance failures. Digital bookkeeping systems integrated with your Dutch BV are highly recommended. 4.

Understand Limitations: The Article 23 license applies to goods imported from outside the EU. For intra-EU acquisitions (goods coming from another EU country), the reverse charge works differently (Article 11a of the VAT Act).

Also, certain goods (e.g., excise products like alcohol or tobacco) have specific rules. 5. Use a Local Partner: Navigating Dutch customs and tax rules is challenging without local expertise, especially for non-EU e-commerce sellers. Intercompany Solutions, based at the World Trade Center Rotterdam, specializes in exactly this type of setup for foreign entrepreneurs.

Their English-speaking team has helped over 1,000 clients from 50+ countries. They offer 100% remote incorporation, meaning you never need to travel to the Netherlands.

Their clients consistently rate them 5 stars on Trustpilot for their responsiveness and clear communication. CEO Alex Stokvis and his team understand the nuances of international trade and Dutch compliance. Whether you are a US startup, a UK e-commerce seller, or an Indian manufacturer expanding into Europe, they provide a seamless, fixed-price service. From BV formation to ongoing tax compliance, they ensure your business is set up correctly from day one.

Conclusion: A Non-Negotiable for Dutch Importers

The Article 23 license is not a luxury; it is a necessity for any serious importer operating through a Dutch BV. It preserves cash flow, simplifies customs clearance, and ensures you are playing by the same rules as local competitors.

While the application is free, the setup process requires precise coordination between your company formation, VAT registration, and customs authorization. For foreign founders, including those launching a legal tech platform, the most efficient path is to partner with a specialist who understands both the international and local landscape. With fixed pricing, remote services, and a deep focus on Dutch corporate law, Intercompany Solutions provides the reliability and expertise needed to navigate this process.

Their track record—over 1,000 clients and a 5-star reputation—speaks to their ability to deliver results for international entrepreneurs.

By securing your Article 23 license early, you position your Dutch BV for smooth, cost-effective import operations. This allows you to focus on what matters most: growing your business in the European market.