1
Your foreign customer pays the VAT on the supply and immediately reclaims it through the tax system of the country concerned. For you as a Netherlands-based entrepreneur, this means that in practice you charge 0% VAT on your invoice and therefore do not have to pay any VAT on your supply.
To keep track of these international VAT shifts within the EU, the Dutch Tax Administration (Belastingdienst) will ask you for an opgaaf ICP, also known as an ICP declaration. This is simply where you report exactly which VAT you’ve shifted, and to whom.
As a Netherlands-based entrepreneur, you can also have VAT reverse-charged to you. You don’t have to file an ICP declaration for this, but you do mention the reverse charge in your regular VAT return (btw-aangifte). We’ll dive into the details later in this blog.
The ICP declaration is only mandatory for reverse charges within the EU. Are you reverse-charging the VAT to an entrepreneur outside of the EU? Then you don’t have to declare this in the ICP declaration.
2
Right, the reverse-charge mechanism is clear, but what does this look like on your invoice? Three things are important:
A VAT number? Don’t worry: if you are an entrepreneur for VAT purposes, you received a VAT number from the Dutch Tax Administration at the start of your business. You can always find this number via Mijn Belastingdienst Zakelijk. Note: as a freelancer, you received two different VAT numbers. The VAT identification number (btw-id) is the number you use on your invoices.
Highlight box: Ben je als ondernemer vrijgesteld van btw, omdat je volledig vrijgestelde werkzaamheden hebt, of onder de KOR valt? Dan kun je geen btw verleggen of btw naar je verlegd krijgen, omdat je geen ondernemer voor de btw bent.
To be able to reverse-charge to or from a VAT number, it must be found in the VAT Information Exchange System (also known as the VIES). his search engine contains all recognized European VAT numbers. Is a VAT number not recognized by VIES? Then in most cases, you’ll simply have to charge Dutch VAT on your invoice.
3
In the ICP declaration, you list the VAT numbers of the entrepreneurs to whom you have reverse-charged VAT. You checked those numbers with VIES first, of course. In addition, you state the amount of turnover on which the VAT has been reverse-charged. This allows the authorities to check whether the entrepreneur to whom you reverse-charged the VAT has also declared that reverse-charged VAT in his/her own foreign VAT return, which completes the reverse charge.
In addition to the separate ICP declaration, you report this turnover in your regular VAT return, specifically in box 3b (supplies to or services in countries within the EU).
4
In principle, you file the ICP declaration at the same time as the regular VAT return: every quarter. The deadline is the same: no later than the last day of the month following the quarter.
There are a few exceptions:
At Kees de Boekhouder, we handle the ICP declaration for you, along with your regular VAT return. You only have to ensure that you have the correct VAT numbers and reverse-charge the VAT on your invoices; we do the rest.
5
Finally, let’s reverse the situation: what if one of your suppliers reverse-charges VAT to you? You don’t need to file an ICP declaration for this, but you do need to process it in your regular VAT return. In box 4b ( supplies/services from countries within the EU rendered to you), you enter which VAT has been reverse-charged to you. In vakje 5b. (voorbelasting), you immediately reclaim that VAT. This keeps the balance at €0, which means that the reverse charge is neatly processed.
Note: are you not an entrepreneur for VAT purposes, for example because your activities are exempt from VAT or do you make use of the KOR? Then be aware that no VAT can be reverse-charged to you: state this to your suppliers as well, to avoid confusion.
Is your head spinning from all those boxes in the VAT return and cross-border reverse charges? The bookkeepers at Kees de Boekhouder are happy to help you with this. Schedule a free online introductory meeting and find out if Kees de Boekhouder is right for you!
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An ICP declaration is a mandatory statement to the Dutch Tax Administration in which you report exactly which VAT you have reverse-charged to which entrepreneur within the EU when supplying products or services.
No. If a foreign supplier reverse-charges VAT to you, you do not need to file an ICP declaration. However, don’t forget to process this reverse charge in your regular VAT return in box 4b and reclaim it immediately in box 5b.
If a European customer’s VAT number is not recognized by the VIES search engine, you will in most cases simply have to charge Dutch VAT on your invoice instead of 0%.
In principle, you file the ICP declaration every quarter at the same time as your regular VAT return. The deadline is no later than the last day of the month following the respective quarter.
Schedule a no-obligation, digital introductory meeting with us.
