What Is an Article 23 License?
If your company imports goods into the Netherlands, securing an Article 23 license is crucial for deferring VAT payments and improving cash flow. Without an Article 23 license, businesses must pay VAT immediately at customs, which can restrict liquidity. With the license, however, VAT is deferred and reported later in the VAT return, simplifying financial operations and strengthening cash management.
In this guide, we explain what an Article 23 license is, who can apply for it, and how Oakhill Financial Services can assist you.
Why Apply for an Article 23 License?
The Article 23 license offers significant advantages for businesses that import goods into the Netherlands:
- No upfront VAT payments at customs.
- Improved cash flow and working capital optimization.
- Simplified administration of VAT obligations.
- Enhanced competitiveness when using the Netherlands as an entry point into the EU.
Import VAT is settled in the next VAT return, resulting in a neutral cash effect for businesses.
Who Can Apply for an Article 23 License?
Dutch-established companies can apply directly for an Article 23 license through the Dutch Tax and Customs Administration (Belastingdienst).
Foreign entrepreneurs, however, cannot apply themselves. They must appoint a qualified tax representative based in the Netherlands.
Role of a Tax Representative in the Article 23 Process
A tax representative, such as Oakhill Financial Services, plays a key role in applying for and managing an Article 23 license:
- Acts as the official Dutch-based representative.
- Provides the required financial guarantee for VAT.
- Prepares and submits VAT returns.
- Files intra-community declarations (ICP) and applies the VAT reverse charge mechanism.
If no other business activities are conducted in the Netherlands, appointing a tax representative can eliminate the need for separate VAT registration.
How to Apply for an Article 23 License
Applying for an Article 23 license involves several steps:
- Eligibility Check: Confirm that your company has activities or clients in the Netherlands.
- Tax Representative Appointment: Engage a tax specialist like Oakhill Financial Services.
- Application Submission: Your representative files the application with the Dutch Tax Authority.
- Financial Guarantee: A guarantee must be provided to cover VAT obligations.
- License Approval: Once approved, you can import goods without upfront VAT payment.
How Oakhill Financial Services Helps You Get an Article 23 License
At Oakhill Financial Services, we are experienced in assisting businesses with obtaining their Article 23 license in the Netherlands. We offer:
- Professional tax representation services.
- Full application and compliance management.
- Strategic financial advice for optimizing VAT and import procedures.
We work closely with businesses of all sizes, helping them maximize the advantages offered by the Netherlands as a logistics and trade hub.
Contact Oakhill Financial Services today to start your application for an Article 23 license and unlock new efficiencies in your import operations.
Frequently Asked Questions (FAQ) About the Article 23 License
What is an Article 23 license?
An Article 23 license allows businesses importing goods into the Netherlands to defer paying VAT at customs. Instead of making an immediate VAT payment, the VAT is reported and settled in the periodic VAT return, improving a company’s liquidity.
Who needs an Article 23 license?
Companies that frequently import goods into the Netherlands and want to avoid upfront VAT payments can benefit from an Article 23 license. It is especially useful for businesses trading across the EU.
Can foreign companies apply for an Article 23 license themselves?
No, foreign entrepreneurs cannot apply for an Article 23 license directly. They must appoint a Dutch-based tax representative, like Oakhill Financial Services, to apply and manage it on their behalf.
How long does it take to obtain an Article 23 license?
The process usually takes 8 weeks after the application is submitted, assuming all documentation and financial guarantees are in order.
Is a financial guarantee always required?
Yes, the Dutch tax authorities require a financial guarantee as part of the application to cover potential VAT liabilities. Oakhill Financial Services can help arrange this as part of our full-service support.
How Daniel from Oakhill Financial Services Handles Article 23 Applications
At Oakhill Financial Services, Daniel personally oversees every Article 23 license application. His approach is hands-on and tailored to each client’s specific situation.
Daniel first ensures that the business structure and import activities meet the Dutch tax authorities’ eligibility requirements. He then carefully coordinates the entire process — from preparing the necessary documentation to submitting the application and arranging the financial security needed for approval.
Because Daniel acts as a registered tax representative in the Netherlands, he can handle everything on behalf of international clients, ensuring a fast, compliant, and stress-free process. His expertise not only guarantees a smooth application but also provides ongoing support with VAT returns, intra-community declarations, and strategic VAT advice.
With Daniel and the Oakhill team by your side, you can confidently navigate the Dutch import landscape and maximize the benefits of your Article 23 license.
