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NDL Blog – World class fiscal and business environment

The right business climate - crucial to your European supply chain

To ensure you have the most effective supply chain to Europe, don’t just look at the logistics. The fiscal and business climate of the country you use as entry point to the European market also has a profound effect on your daily operations and cash flow. Looking to expand your business in Europe? The Netherlands is your gateway.

Operational attractiveness

The Netherlands is known to be the most connected country in the world, with a strategic geographical location in between the major markets in Europe and most European countries within a 24 hours reach. Thanks to its 5 seaports and connections to multiple air hubs, there are many options to get your product into Europe. The Netherlands has an excellent infrastructure by road, rail, and water, and an extensive network of more than 35 inland terminals (both rail and barge). This ensures that there are always transport alternatives, which reduces operational risks.

The relatively flexible labor legislation, lowest strike rate in Europe and multilingual workforce (making sure you don’t get ‘lost in translation’ or face operational disruptions), minimize your operational risks even further.

When it comes to the operational environment, especially in these uncertain times, the Netherlands is the low risk, solid foundation for your business to expand its European supply chain.

VAT deferment

But there is an added bonus, in the Dutch fiscal and business climate. The Dutch customs authorities are considered to be the most efficient and pro-business in the world1 and it gives you the possibility to set up a tax efficient supply chain.

The Netherlands provides VAT deferment and bonded warehousing. Due to the VAT deferment system you don’t have to pre-finance your import VAT. Rather, payment is deferred to the periodical VAT return. With VAT reclamation taking up to over a year in some European countries, this results in a considerable cash flow advantage. To be eligible for VAT deferment you only need a Dutch fiscal representative that can get the needed article 23 license for this (click here to read more about this…). Many Dutch logistics service providers offer such value added services.

Bonded warehousing

Dutch logistic service providers can also help you with bonded warehousing or bonded transport. A customs-bonded warehouse can help you avoid double duty payment, postpone duty payment until clearance, during an unlimited period of time and with less customs interference. Thus, also positively impacts your cash flow. Watch how the pro-business and effective Dutch customs positively impact your supply chain and cash flow:

Low-risk setup

So, are you looking for the most cost-effective and low-risk place to setup or expand your European supply chain? In a place known not only for its excellent logistics, but also its fiscally and operationally attractive climate? Setup shop in The Netherlands, your gateway to Europe.

Stan de Caluwe, Senior Manager Supply Chain Solutions at HIDC


1 Deloitte VAT Index 2016

Written by

Stan de Caluwe

April 3rd 2019