All the entrepreneurs that are a member of a Fiscal unity will be regarded by the tax authorities as one entrepreneur. A Fiscal unity often consists of a mother company and one or more daughter companies.
If you form a fiscal unity, this has VAT implications. For example, the Fiscal unity files one VAT return for all companies together. In addition, a Fiscal unity does not pay VAT on supplies of goods and services between the companies.
Conditions for Fiscal unity
In order to form a Fiscal unity the following conditions should be met::
- The companies must form an unit on financial, organisational and economical level
- Each entrepreneur must be liable for VAT in the Netherlands
- A Fiscal unity can be formed with any legal form.
However at least one CV, BV, foundation or association must be a member of the Fiscal unity.
- A Fiscal unity that will consist of natural persons only (sole proprietorship, partnership, general partnership (VOF) or the so-called 'man/vrouw-firma' (special VOF where the partners are also fiscal partners of each other) is not possible,
How will the Fiscal unity be determined?
You can ask the tax authorities to determine the Fiscal unity of your companies. This can also be done on the initiative of the tax authorities itself. The tax authorities will send a written notice about whether or not your companies form a Fiscal unity.
In order to be sure that the tax authorities regards your companies as a Fiscal unity we advise you to let this be determined by the tax authorities in advance. For this reason you can contact the tax authorities.