Netherlands
Fiscal Unity Updated 2026-01-101 change this quarter
Baseline
Fiscale Eenheid (Fiscal Unity for VAT)
The Netherlands allows closely connected entities to form a fiscal unity (fiscale eenheid) for VAT purposes. Within the unity, supplies between members are disregarded for VAT. Following the Skandia/Norstel CJEU ruling, the Netherlands has been reviewing the scope of fiscal unity, particularly for branches and cross-border situations.
Key Dates
1968Fiscal unity for VAT introduced in Dutch law
2014Skandia CJEU ruling impacts branch treatment in fiscal unity
2025Updated guidance on fixed establishment treatment in fiscal unity
Who is in scope
Entities financially, economically, and organizationally interconnected. Includes companies, branches, and certain partnerships.
Process
Entities meeting the three interconnection criteria are automatically deemed a fiscal unity -> Belastingdienst can also designate entities as a unity -> single VAT number issued -> internal supplies disregarded.
Official Sources
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