What was happening in court recently?
Recent proceedings before the District Court of North Holland (ECLI:NL:RBNHO:2019:5926) concerned a wholesaler in flowers and plants, etc. According to the administration, it purchases 75% of its merchandise from a private limited holding company (!) in the Netherlands.
Poor administration
During book inspection, it soon becomes clear that there are quite a few administrative shortcomings. Purchase invoices, for example, do not meet the invoice requirements. The seller's VAT identification number, among other things, is missing. In addition, the administration does not contain any information about purchase orders, copies of transport papers or other documents. According to the parties involved, the flowers were sold to companies in Russia. However, no sign of this can be found in administration.
Additional taxes
In addition, the private limited holding company has never paid the VAT due on its sales invoices. The Tax and Customs Administration states that the company has not demonstrated that there are actual deliveries. The deduction of input tax is to be refused in full. The company has to repay thousands of euros in VAT.
Invoicing requirements
Of course, you don't make the mistakes these 'entrepreneurs’ made. However, this judgment underlines how important correct purchase invoices are. Check that they meet the invoice requirements. Don't only consider the VAT identification number in this matter, but the name and address details of the buyer and seller, the Chamber of Commerce number, the date and, of course, the correct amounts as well.
Export
Will you be exporting the purchased goods? Ensure that you can prove that the goods have actually left the Netherlands. Provide an export document that has been fully signed off by Customs. Store the invoices and documents of your carrier as well. If you export purchased goods, make sure you can prove that they have actually left the Netherlands. Store documents from your carrier.