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NL introduces VAT Reverse Charge for Mobile Phones and Computerchips

Sunday, 1 Jul 2012

Decree of the Dutch State Secretary of Finance of May 25, 2012, BLKB 2012/226M - effective 1 June 2012

Summary of the VAT reverse charge option:


As of June 1, 2012, the supplier of mobile phones and computer chips can opt to issue an invoice without Dutch VAT to its business customer for local Dutch sales under the co-called VAT reverse charge method, if the following conditions are met:

- The sale relates to mobile phones and computer chips

- The sale is a so-called domestic sale subject to Dutch VAT under the normal Dutch VAT rule

- The invoice value (excluding VAT) must exceed EUR 10,000


What does this means in practice for your business?

In case you fulfill the conditions of this VAT reverse charge mechanism, we strongly advise you to apply for the reverse charge on your Dutch sales. This would give you a VAT cash flow advantage, as you are no longer required to charge Dutch VAT to your customers. Note however that you will have more administrative obligation to prove that you can apply this special VAT reverse charge rule. AB Consult would be pleased to assist you in ensuring that your administrative requirements are met.


What does "Mobile phone" and "computerchips" mean?


A mobile phone under this reverse charge rule includes inter alias: 

- Mobile phones that can be used for multiple functions such as smart phones (i.e. not solely for the purpose of calling)

- Accessories (charger, battery, protective case, etc) that are delivered together with the mobile phone as one package

- Pre-paid mobile phones supplied without a subscription

The reverse charge rule will for example not apply to the following “mobile phones”:

- Mobile phones supplied together with a subscription as one package 

- Phone accessories supplied without the mobile phones

- Walkie talkies

- Wi-Fi phones, unless they are also intended for use with the mobile network

- 3G data cards and Wi-Fi cards

- Tablets

Computer chips under the reverse charge rule includes inter alias: 

- CPUs (central processing units)

- Mph's (microprocessors or microprocessor units)

- MCUs (microcontrollers or microcontroller units)

- Chipsets supporting mph's


The reverse charge  will only apply for chips which are sold separately and not for the chips which are built into a final product, such as a computer or tablet. Also, the reverse charge does not apply to goods such as servers, laptops and desktops.


For further information, please contact Grace Liu or Nga Dang.


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