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Indirect Tax Alert
Update on mandatory new portal for VAT related matters and eRecognition
From 2022 onwards, it is mandatory for VAT taxable persons performing activities in the Netherlands to submit their VAT returns and to communicate other VAT related matters in the new portal of the Dutch Tax Authorities.
13 January 2022
An online identification system (“eHerkenning”) will be mandatory to enter this portal.
This transition poses problems in several areas. This applies to both the group of taxable persons who have been postponing the transition and the group of taxable persons who are not natural persons and are not registered in the trade register of the Dutch Chamber of Commerce. At the end of 2021, the circumstances surrounding the phasing out of the old portal and the transition to the new portal were further clarified. In this alert we discuss this in more detail.
From 2022 onwards it is mandatory for VAT taxable persons to login into the portal of the Dutch Tax Authorities (DTA): “Mijn Belastingdienst Zakelijk”, by using eHerkenning (“eRecognition”), a standardized login system providing online identification, to submit (supplementary¬) VAT returns or statements of intra-Community services (ICP) for 2022. The new portal replaces the old portal as of 2022. More background information regarding eRecognition and the new portal can be found in our previous alert.
Problems with registration in Chamber of Commerce trade register
Generally, there are no problems for VAT taxable persons, not being a natural person, who are registered in the Chamber of Commerce trade register. They can apply for eRecognition to log in the new portal.
VAT taxable persons being natural persons/self-employed/sole proprietorship business are also able to register in the trade register. Besides eRecognition, they can opt to continue submitting VAT returns in the new portal with “DigiD”, a login system providing online identification for individuals.
On the other hand, there is a group of taxable persons that are not registered in the trade register of the Chamber of Commerce and as a result cannot apply for eRecognition. Accordingly, they are also unable to submit their VAT return in the new portal and use this portal for other VAT related matters. This mainly affects VAT taxable persons not established in The Netherlands. Until now, there was a lack of clarity for this group regarding the use of the new portal for submitting their VAT return.
In a Decree of 28 December 2021 (only available in Dutch: Eindejaarsregeling) in which adjustments to implementing rules are published, the State Secretary of Finance offers a solution.
The State Secretary confirms that the old portal will remain open for this group of VAT taxable persons for submitting VAT returns, supplements to VAT returns or ICP statements for the time being. Other (technical) solutions, such as switching to paper VAT declarations, have proved unfeasible. The State Secretary expects to have a fully-fledged solution for this group from 2023 onwards.
Incidentally, it is still possible to file a VAT return with the assistance of an intermediary or through the use of own administration software package.
Delay in transition
According to a document added to the Decree, the DTA is examining the risk that a group of VAT taxable persons will experience delays in the transition to the new portal due to circumstances, while the old portal will in principle be closed from February 2022 onwards. This applies, for example, to taxable persons who switched to eRecognition at the very last moment or for other reasons do not have access to eRecognition in time.
The DTA indicates that the basic principle is to demonstrate flexibility towards taxable persons who contact the DTA and indicate that they do not (yet) have an alternative to the old portal at their disposal in order to prevent automated assessments with default fines. The DTA will then check on a case-by-case basis whether the VAT returns can still be submitted in the old portal or whether the submission of the VAT return can be postponed.
Your Deloitte advisor can assist you with this transition or any other questions related to this topic. For example, we can assist you with the application for eRecognition and the transition to the new portal.
In addition, your Deloitte VAT advisor can assist you in preparing the various VAT reports by means of the specific declaration software available to Deloitte or by consulting with the DTA in the event of a delay in the transition to the new portal.