Request VAT number
After the English Limited is registered with the Chamber of Commerce in the Netherlands, a VAT number can be requested.
To assess whether the English Limited entrepreneur is for VAT, the following matters are taken into account:
A taxable person for VAT is any person who, in the pursuit of an economic activity, provides, regularly and independently, for profit or not, a supply of goods or services, wherever the economic activity is carried on.
The definition includes 4 essential elements:
Natural person, legal person or associations insofar as they carry out economic activities
All activities of the producer, trader or service provider are envisaged (except for exempt transactions).
Regularly exercised activity:
To be a taxable person, the transactions listed in the Code must be performed by him / her on a regular basis. Only through succession do actions become an activity. The regular occurrence of the actions in the form of an activity is not clearly defined. Determining whether an action is part of a regular activity or of an accidental nature is assessed on the basis of the facts.
The activity must be carried out on an independent basis and not in employment. There should be no bond of subordination to another person
If the English Limited meets the above requirements, there is a tax liability for VAT, and the Tax Authorities will issue a VAT number.This international VAT number is crucial for international transactions with other legal entities within the EU, since a valid number leads to an invoice without VAT (a so-called intra-community transaction). Also always check the validity of the VAT number of your counterparty, as the normal VAT rate applies if the number is invalid.