The new VAT system in the single European market

The single European market was completed on 1 January 1993. From this date goods, persons, services and capital may be moved freely within the EU. The transitional arrangements applicable after this date, for which the 1968 Turnover Tax Act of the Netherlands has been amended, contain the following main points.

Imports

Imports are confined to the bringing into free circulation in the Netherlands of goods from countries outside the EU. The rates to be applied are the same as those applicable to supplies of foods in the Netherlands. VAT will be levied either in the same way as import duties or, after the appropriate licence has been granted, in accordance with the deferred payment system.

In the first situation the customs procedure is applicable. This means that the tax due must be paid by the declarant when submitting an import declaration, or that security must be provided for this purpose. In the second situation the tax due is collected from the business for which the goods are destined. The time of payment is then deferred until the time at which the business must submit the periodic domestic VAT tax return. In such cases the time of payment is coincident with the right to deduct the same tax.

There are exemptions for imports, but these do not affect the right to the deduction of VAT on input.

Tax returns and assessments

The period to which returns relate may be monthly, quarterly, or annually, depending on the amount of VAT due. Almost all VAT returns are prepared and dispatched by a computerised system. The system checks that the forms are returned and the amounts in question are paid in good time. The return must be submitted within one month of the end of the period to which it relates. The tax owed must also be paid within this period. Returns for which no tax is due, or a refund is requested, should be submitted within one month.

A significant percentage of retrospective assessments is the result of returns being submitted too late, or the associated payment not being made in good time. As mentioned above these are monitored by a computer system, which automatically prepares a retrospective assessment if a payment is not made, or a return is not submitted in good time. The system uses information from returns relating to previous periods to determine the amount of the assessment for the period in question.

In addition to assessments resulting from the failure to file a return or pay the tax owed in good time, retrospective assessments are also issued if checks reveal that too little VAT has been paid. It is possible to object and appeal against retrospective assessments; however this does not suspend the obligation to pay the tax deemed to be payable.

Налоги на охрану окружающей среды(Environmental Taxes)

Fuel tax

Fuel tax is levied on mineral oils, coal, natural gas, blast furnace gas, cokes oven gas and coal gas. Mineral oils are petrol, diesel fuel, heating gas oil and heavy fuel oil. The tax revenue is estimated as approximately NLG 1,509 million in 2000.

Taxable persons

The fuel tax on mineral oils is levied together with excise duty on mineral oils. Fuel tax on the other fuels mentioned above is due by persons who extract, produce or import these fuels, and subsequently use them as fuels or transfer them to others for use as fuels. The number of taxable persons liable to fuel tax is restricted as the tax is levied primarily on the manufacturers and importers of fuel.

Tax rates

The rates for the most common fuels on 1 January 2000 are as follows:

Exemptions

All usage other than as fuel is exempt.

Tax on groundwater

Groundwater tax is levied on the extraction of sweet groundwater. This tax has been levied since 1 January 1995. The tax revenue is estimated at approximately NLG 360 million for 2000.

Taxable persons

The tax is levied on the proprietors of the establishments extracting groundwater. These are, for example, the manufacturers of drinking water, farmers, and industries that use groundwater.

Rates

For drinking water companies the rate is NLG 0.3530 per m³; for others the rate is NLG 0.2634 per m³. Rebates are applied for infiltrated water.

Exemptions

Exemptions are applicable under certain conditions, for example in case of extraction of groundwater for draining a building site, as well as test-extractions, extraction for use for sprinkling and irrigating land and extraction needed to clean groundwater.

Tax on tap water

The tax on tap water is levied on the deliverance of tap water to a maximum 300 cubic meters per year. The tax revenue is estimated at NLG 215 million for 2000.

Taxable persons

The tax is levied on the tap watercompanies.

Rates

The rate is NLG 0.285 per m³.

7.4. Tax on tap water

The tax on tap water is levied on the deliverance of tap water to a maximum 300 cubic meters per year. The tax revenue is estimated at NLG 215 million for 2000.

Taxable persons

The tax is levied on the tap watercompanies.

Rates

The rate is NLG 0.285 per m³.

Regulatory energy tax

The regulatory energy tax is levied on the consumption of natural gas, electricity and mineral oil products when used as substitutes for gas by domestic users or commercial establishments. The tax revenue is estimated at NLG 4,208 million for 2000. The revenues are returned to domestic users and business by way of reductions in other taxes.

Taxable persons

The tax is levied on the energy distribution companies and manufacturers and wholesalers of mineral oils. These companies pass on the tax to their customers.

Rates

Natural gas is taxed to a maximum of 1.000.000 cubic metres per year, with a tax-free allowance of 800 cubic metres per year. Electricity is taxed to a maximum of 10.000.000 kWh per year, with a tax-free allowance of 800 kWh. The rates for 2000 are as follows:

A zero rate applies for fuels used for transport purposes.

Exemptions

Exemptions are for instance applicable for all usage other than as fuel and for natural gas used to produce electricity.

Tax on uranium

This tax is levied on uranium-235. The tax was introduced so that nuclear-generated electricity would be taxed in the same way as fuel-based electricity. The tax came into force on 1 january 1997. The tax revenue has been estimated initially at NLG 12 million for 2000.

Taxable persons

This tax is due by nuclear energy companies.

Rates

NLG 33.17 per gram of Uranium-235.