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US based should start a Branch or Subsidiary in NL

We are a US based company that plans to set up a EU Fulfillment Hub in the NL. We sell small electronic goods that will ship out to private individuals (e-commerce sales)  anywhere in the EU, and possibly UKSN in the future. We will need to be VAT registered for Import and Export. Hoping to apply for an Article 23 license for import deferment and then also signing up for the NL One Stop Shop to pay out all export VAT due. We will also have two US employees that will need work visas. 

For tax liability reasons and ease of VAT requirements, what is the best option to go about creating this Filfillment Hub. Would a subsidiary work better so the US based company is not liable for as much, or would a permanent establishment Branch be sufficient. 

Thank you for any guidance! 

 

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Dear Liz, welcome to the forum,

 

From behind a screen this is impossible to answer. We have no idea what your business is about, what your turnover and profits are, what liability risks are involved. Just know that liability won't be mitigated or lowered if you use a branch office in stead of a subsidiary. That's about all I can tell you.

 

The best advice I can give you is to contact a tax/legal firm that knows both sides of the pond (which isn't me).

 

best of luck

Joost

DenariusAdvies: Tax | M&A | Legal

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Hi Liz,

It is a broad question. Perhaps it would be best to seek a professional within the Netherlands that is specialized in helping business owners from abroad. But, if you are lucky, maybe someone here knows a couple of interesting things about it.

Personally I would advise to check out the website of our Chamber of Commerce, which is called Kamer van Koophandel in Dutch. Often shortened to KvK. This is the official government agency for anything business related.

In particular, this page (English) might be valuable for you. For example, this side note:
 

Quote

Registration is also mandatory for foreign businesses without a Dutch branch that provide workers on a paid basis in or to the Netherlands. Examples of such companies are temporary employment agencies, payroll companies and jobs pools based outside the Netherlands but active in the Netherlands.

 

Daxto.com - Modern ondernemen | Altijd een goede grip op je onderneming.

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