Management fees between companies are generally subject to 21% VAT in the Netherlands. However, there’s an important exception: no VAT is charged when the management fee is invoiced within a fiscal unity for VAT purposes. Our partner Richard recently wrote a comprehensive article about this topic. Key points from the article: For a fiscal unity […]
Quick Notes
New Remote Work Tax Rules for Dutch-German Cross-Border Workers
The Netherlands and Germany have agreed to modify their tax treaty to simplify taxation for cross-border workers who work remotely. This change, announced April 14, 2025, represents a significant development for businesses with employees working across these borders. Key Changes: Business Benefits: Limitations: Implementation Timeline: The treaty modification still requires approval from both Dutch and […]
When Is a Business Loan Considered “Non-Business” for Dutch Tax Purposes?
A recent Dutch court ruling provides clarity on when loans between related companies can be written off for tax purposes – crucial information for entrepreneurs with multiple business entities. Key Points for Business Owners: The Burden of Proof: The Dutch Tax Authority must prove a loan is “non-business” (onzakelijk), not the other way around. Form […]
Do German GmbHs Require a Resident Director?
While technically a German GmbH (private limited company) doesn’t legally mandate a resident director, there’s an important practical consideration for business owners: Tax residency status requires effective management to occur within Germany. Without at least one German-resident director, tax authorities may question whether: This is particularly relevant for UK businesses establishing EU operations post-Brexit who […]