A logistics seminar explaining the Netherlands' import VAT payment deferral system, Article 23, was held in Osaka and Tokyo, covering how the system works, its cash flow benefits and eligibility.
The Netherlands Foreign Investment Agency (NFIA), part of the Ministry of Economic Affairs and Climate Policy, and the Holland International Distribution Council jointly hosted logistics seminars on 14 September in Osaka and 15 September in Tokyo. The seminars were supported by the Embassy of the Kingdom of the Netherlands and JETRO.
The seminars focused on Article 23, a system that allows payment of VAT charged on imports to be deferred until the importer files and pays its periodic VAT return. The system applies to goods imported through ports and airports for distribution within the EU.
The system was described as relatively simple and easy to use. One of its benefits is that importers can proceed with customs clearance without paying import VAT at the time of import. By offsetting output VAT against input VAT, it may be possible to avoid an actual payment of import VAT.
It was explained that the system is available to businesses established in the Netherlands, as well as overseas importers and local subsidiaries of Japanese companies through a VAT representative. Seminar speaker Rakesh Giller (ラケシュ・ギラー) said the system is well suited to non-resident inventory and is widely used by US companies, while its use by Japanese companies remains limited.
The Dutch side plans to continue promoting the system through seminars and trade publications to raise awareness among Japanese companies.
(Kohei Okui)
(Netherlands, Japan)