The Dutch State Secretary of Finance recently published an updated decree on the VAT treatment of supply of staff. The decree includes clarifications on the situations in which the provision of personnel does not result in VAT.
In principle, the provision of labour force is a VAT-taxable service. However, in certain cases, the posting of employees may be exempt from VAT. These situations include, among others, the lack of compensation (in money or in kind), certain multi-party employment relationships, the so-called pool agreements and posting within a fiscal unity (fiscale eenheid). Further, a VAT exemption may apply under strict conditions in case of particular cost-sharing schemes.
Should you have questions regarding the (cross-border) VAT treatment of the posting of employees in the Netherlands, do not hesitate to contact us.