What you get back with a Dutch BV

  • Contracts: EU companies and public buyers approve EU suppliers more quickly. A British Ltd often gets stuck in their supplier checks, and a BV usually passes them.
  • VAT: with one Dutch VAT registration, you report your Dutch sales in the normal Dutch VAT return and your consumer sales in the other 26 EU countries through the EU VAT return for cross-border sales (OSS). For imports, you use import VAT deferment. See how the deferment works.
  • People: from the Dutch base, you can hire staff in any EU member state. The EU rules on free movement apply, so there is little paperwork. See the employer setup.
  • Platforms: you get the status of an EU seller on marketplaces and app stores that require an EU establishment.

The usual group structure

Most UK businesses use the same structure. They have a Ltd for Britain and a BV for the EU. If they plan to sell the business later, they add one holding company above both. See the three options and the holding company explained. You can set up the BV remotely, usually within one week once all documents are complete (see remote incorporation).

Selling from the UK to EU customers? Compare the ways for UK companies to sell in the EU, with a partner or with your own Dutch company.

Real substance in the Netherlands

You get EU access when the company is really established in the Netherlands. This means an actual office, local administration and decisions taken in the Netherlands (see substance in the Netherlands). Set this up properly once, and you can use it for every later contract.

Is your group setting up a Dutch entity? See setting up a Dutch subsidiary for what you need, how long it takes and what the parent company must sign.

Costs and returns of a Dutch BV

Each year, the BV keeps books and prepares annual accounts. Corporate tax on the EU profit is 19% up to €200,000. If you win back one large contract through the BV, you recover its cost in the first quarter.