How to request a VAT fiscal unity in the Netherlands

A VAT fiscal unity lets two or more interlinked entrepreneurs act as a single taxable person for VAT. Supplies and services between members then fall outside the scope of VAT, and the unity files one combined VAT return. Unlike the CIT fiscal unity, there is no official Belastingdienst form. You prepare a request letter.

No form, but a request letter

The VAT fiscal unity exists by operation of law once the three forms of interlinkage are met. You ask the inspector for a ruling that formalises the unity. You do that with a letter describing the group and substantiating that the members are financially, organisationally and economically interlinked.

What goes in the request?

• The entrepreneurs. Name, VAT number or RSIN and legal form of each member. At least one member is a legal person (for example a bv).
• The desired start date. The ruling applies going forward; state the date from which you want the unity recorded.
• The interlinkage motivation. Explain per form (financial, organisational, economic) why it is met.
• A contact person for the inspector's questions.

Which documents do you enclose?

Enclose a KvK extract for each entity and, where relevant, an organisation chart or overview of the shareholdings. That shows the financial interlinkage: more than 50% of the shares, including control, of each member in the same hands. Note that this is a different threshold from the 95% ownership requirement for CIT.

What does the inspector test?

The inspector assesses whether the members are VAT entrepreneurs, established in the Netherlands (or with a Dutch fixed establishment), and whether the three forms of interlinkage are cumulatively present. A pure holding that does not involve itself in management is in principle not an entrepreneur and cannot be included on its own. Read more in Interlinkage in the VAT fiscal unity.

Example

Holding B.V. holds 100% of the shares in Werk B.V., the same director manages both, and Werk B.V. works mainly for the group. All three forms of interlinkage are present, so the fiscal unity exists by operation of law. With a request letter you ask the inspector to record this by ruling.

Mind the consequences

Once the unity is established by ruling, the parts are jointly and severally liable for the VAT of the unity (article 43 of the Collection Act 1990). Also assess whether the unity already existed over past periods. Read more in VAT fiscal unity by operation of law.

Ready to start?

Unsure whether you need VAT or CIT? First read CIT fiscal unity vs VAT fiscal unity: what is the difference? Then use our tool to assess the interlinkage and prepare the substantiated request letter, in Word and PDF.