As an e-commerce entrepreneur, you naturally want to keep as much financial flexibility as possible to invest in growth, inventory, or marketing. Did you know that Article 23 of Dutch VAT law can help you do just that? This regulation allows you to defer VAT on imported goods, significantly improving your cash flow.
In this article, we explain how Article 23 works, what advantages it offers, and how to use it strategically for your webshop.
What exactly is Article 23?
Article 23 of the Dutch VAT Act (Wet op de Omzetbelasting) allows entrepreneurs who regularly import goods from non-EU countries to settle the import VAT directly in their periodic VAT return. This means you don’t have to pay VAT to customs when the goods enter the Netherlands. As a result, your working capital remains available when you need it most.
Why Article 23 matters for webshops
Many webshops source their inventory from countries outside the European Union, such as China or the United States. Normally, VAT must be paid on the value of the goods upon arrival in the Netherlands. These can be substantial amounts that you must pre-finance and later reclaim via your tax return. With Article 23, you skip that prepayment step and can immediately use the money for other business expenses.
Example: the cash flow impact
Suppose you import a shipment worth €15,000. Normally, you’d pay €3,150 (21% VAT) directly to customs. That money is tied up temporarily. With Article 23, you keep that amount in your account and can use it right away—for example, to buy more stock or launch a marketing campaign. It’s a simple way to stay agile and efficient as your business grows.
Key benefits of Article 23
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Improved cash flow: No upfront VAT payment on imports, leaving more cash for daily operations.
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Lower financing pressure: Less need for external funding to pre-finance VAT.
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Efficient inventory management: Greater flexibility to make faster or larger purchasing decisions.
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Competitive advantage: With stronger liquidity, you can offer better prices or negotiate improved supplier terms.
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Administrative simplicity: No separate refund procedures for import VAT.
How to apply for an Article 23 permit
To use Article 23, you’ll need a permit from the Dutch Tax Administration (Belastingdienst). The process involves a few simple steps:
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Check your eligibility: Your business must be VAT-registered in the Netherlands and regularly import goods.
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Submit a written request to the Belastingdienst with details about your company and import activities.
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Start applying the rule by processing import VAT directly in your VAT return once the permit is granted.
Note: The Belastingdienst may set additional conditions, such as maintaining accurate bookkeeping and timely VAT filings.
Common mistakes to avoid
While Article 23 offers big benefits, misusing it can cause issues. Avoid these common pitfalls:
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Incorrect VAT filings, which can trigger audits or fines.
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Not meeting eligibility requirements, risking the loss of your permit.
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Poor bookkeeping, leading to problems during tax inspections.
Always maintain a clear and accurate administration, and ensure that VAT is processed correctly in your returns.
Why working with an accounting firm is a smart move
Applying for and correctly implementing Article 23 can be complex, especially if you’re new to VAT and import rules. An experienced accounting firm like Balancify can help you with:
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Submitting a complete and compliant application to the Belastingdienst.
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Setting up and maintaining proper VAT records.
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Identifying additional tax optimization opportunities tailored to your business.
That way, you can focus on growing your webshop while we take care of the financial and tax side.
Conclusion: use Article 23 to strengthen your cash flow
Article 23 is a powerful tool for e-commerce entrepreneurs who import frequently and want to maintain liquidity. By deferring VAT payments, you free up more working capital to invest in your company’s growth.
Want to know if Article 23 is right for your webshop or need help with the application process? Contact the specialists at Balancify. We’ll help you build a solid financial foundation and make smart fiscal decisions—so you can keep scaling your success.
