Moroccan Automotive and Textiles: Supplying the EU from Inside

Automotive: the supplier’s position

Car makers (OEMs) and their direct suppliers (tier-1s) want EU terms. They want a local company, an EU VAT number and consignment stock near the production line. A Dutch BV (besloten vennootschap, the Dutch private limited company) keeps the buffer stock and invoices within the EU at documented 0%. The purchasing department gets an EU contract partner, and production stays in Tangier.

Textiles: fast delivery and EU rules

For textiles, you must follow several EU rules, such as labelling, product safety and the coming producer responsibility for textiles (EPR). The BV handles these rules once for all 27 markets. If you also sell your own brand online to consumers, the BV files the OSS return as well.

How the goods are shipped

Ships take the goods from Tangier to Rotterdam within days (short sea shipping). The BV keeps stock close to EU customers and refills it based on a rolling forecast. The BV handles the import formalities with its own EORI number. With Article 23, it declares the import VAT in its VAT return and deducts it in the same return.

Compare the Netherlands with Ireland and Germany on tax, substance, running costs and time. See setting up a Dutch subsidiary for a foreign parent company.

The entity step

See the exporters article for more details for Moroccan companies. You can set up the BV remotely, with the Moroccan parent as 100% owner, see the BV page.