Who Is Eligible for an Article 23 License in the Netherlands?

If you import goods into the Netherlands, one question becomes very important very quickly: are you eligible for an Article 23 license? Many founders hear about Article 23 VAT deferment and assume it is available to everyone. That is not always the case.

The Article 23 license allows businesses to defer import VAT instead of paying it at the border. This improves cash flow significantly, especially for eCommerce sellers, trading companies, and international importers. But eligibility depends on your company structure, tax registration, and compliance status in the Netherlands.

We often see founders set up logistics and suppliers first, and only later check Article 23 eligibility. That can slow operations or create unexpected VAT payments. Understanding who qualifies before importing saves both money and stress.

In this article, we explain clearly who is eligible for an Article 23 license in the Netherlands, what the tax authorities look for, and how businesses can position themselves correctly from the start.

What Is an Article 23 License in Simple Terms

An Article 23 license in the Netherlands is a special VAT deferment permission. It allows businesses to avoid paying import VAT at the time goods enter the country. Instead of paying VAT upfront at customs, the company reports and settles it in its regular VAT return.

In simple words, you don’t pay VAT at the border. You declare it later in your VAT filing. For most businesses, this creates a major cash flow advantage.

Normally, when goods are imported into the Netherlands:

• Import VAT must be paid immediately
• Customs will not release goods until VAT is settled
  

With Article 23 VAT deferment:

• No upfront VAT payment
• VAT is declared in your periodic VAT return
• Cash stays inside the business
  

This is why Article 23 Netherlands is highly valuable for eCommerce sellers, import/export companies, and international trading businesses.

However, not every company automatically qualifies. Eligibility depends on your legal setup and tax compliance status. That’s where many founders get confused.

Who Can Apply for an Article 23 License

Not every business importing into the Netherlands can apply directly for an Article 23 license. Eligibility depends mainly on your legal structure and VAT position.

In general, the following businesses can apply:

• A Dutch BV (private limited company) registered in the Netherlands
  
• A Dutch cooperative legal entity with VAT registration
  
• Businesses that are properly registered for Dutch VAT
  
• Companies that regularly import goods into the Netherlands
  

The key requirement is that the company must be VAT registered in the Netherlands and compliant with tax obligations. Without a Dutch VAT number, Article 23 approval is not possible.

Foreign founders can also qualify, but only if they have established a Dutch legal entity and completed proper VAT registration. Simply selling into the Netherlands is not enough.

This is why we always advise founders to align company setup and VAT planning before starting imports. Article 23 eligibility is not just about logistics, it is about compliance structure.

Eligibility Criteria for Foreign Founders and Non-Dutch Directors

Foreign founders and non-Dutch directors can absolutely qualify for an Article 23 license. But there are a few conditions that must be properly structured.

The Dutch tax authorities mainly look at compliance, not nationality. So the important factors are:

• The company must be legally established in the Netherlands
• The business must have a valid Dutch VAT number
• Proper bookkeeping and administration must be in place
• VAT returns must be filed correctly and on time
  

If the director lives outside the Netherlands, that is not automatically a problem. However, the company must show that it is genuinely operating and compliant. Paper companies without activity often face delays or rejections.

In some cases, tax authorities may review financial stability and transaction history before granting Article 23 VAT deferment. Clean compliance history increases approval chances significantly.

We often structure Dutch BVs for international founders specifically to meet Article 23 eligibility standards from day one. Planning early avoids unnecessary back-and-forth with tax authorities.

Do You Need a Dutch BV to Qualify?

A common question we hear is: Do you need a Dutch BV to get an Article 23 license?

The short answer is — in most practical cases, yes.

The Article 23 license is linked to a Dutch VAT registration. To obtain Dutch VAT registration easily and maintain compliance, most foreign founders set up a Dutch BV. This structure is widely accepted by the tax authorities and banks.

Technically, other Dutch legal entities like a cooperative may also qualify, but they must still meet the same VAT and compliance standards. Simply having a foreign company selling into the Netherlands is not enough.

Without a Dutch legal entity and Dutch VAT number:

• You cannot apply directly for Article 23
• You may need a fiscal representative
• Import VAT may need to be paid upfront
  

This is why many international importers choose to register a Dutch BV first, then apply for Article 23 VAT deferment. The structure makes the approval process smoother and more predictable.

Financial & Compliance Requirements for Approval

Getting an Article 23 license is not just about registering a company. The Dutch tax authorities want to see that the business is financially stable and properly managed.

Here are the main things they usually look at:

• Active Dutch VAT registration
  
• Proper bookkeeping system in place
  
• Timely VAT return filings
  
• No outstanding tax debts
  
• Clear import activity or planned import operations
  

If the company is newly formed, the tax authorities may ask for additional information. This can include expected turnover, supplier contracts, or proof of business activity. They want to confirm that the company is genuinely importing goods, not just applying for VAT deferment without operations.

Companies with poor filing history or late tax payments may face delays or rejection. Compliance history matters more than many founders realize.

Situations Where an Article 23 Application May Be Rejected

Not every Article 23 application gets approved. In fact, we see rejections mostly when compliance is weak or documentation is incomplete.

The Dutch tax authorities may reject an Article 23 license if:

• The company does not have an active Dutch VAT number
  
• VAT returns were filed late or incorrectly
  
• There are outstanding tax debts
  
• The business activity is unclear or not well documented
  
• The company appears inactive or only set up on paper
  

New companies without proper bookkeeping or realistic import plans may also face additional scrutiny. Tax authorities want to see real operations, not just a structure created to defer VAT.

Sometimes, rejection happens simply because the application was not prepared properly. Missing information or unclear explanations can slow things down or lead to denial.

This is why planning before applying is critical. At FirmNL, we review compliance, VAT status, and documentation first — so applications are submitted correctly the first time.

How FirmNL Helps Businesses Qualify for Article 23

At FirmNL, we don’t treat Article 23 as just a form submission. We look at the full structure first — company setup, VAT registration, compliance history, and planned import activity.

Our support usually includes:

• Setting up a Dutch BV correctly
• Obtaining Dutch VAT and EORI registration
• Reviewing bookkeeping and VAT filing status
• Preparing the Article 23 application with proper documentation
• Communicating with the Dutch tax authorities if clarification is needed
  

Many founders try to apply directly without checking eligibility first. That often leads to delays or rejection. We prefer to prepare everything in advance so approval chances are strong from the beginning.

For eCommerce sellers, import/export companies, and international traders, Article 23 VAT deferment can significantly improve cash flow. But only when it’s structured properly.

If you are planning to import into the Netherlands and want clarity on eligibility, we at FirmNL can assess your situation and guide you step by step.