When a foreign company imports goods or undertakes other economic activities in the Netherlands, they have to fulfil administrative obligations when it comes to Dutch VAT. This Value Added Tax is 21% for most goods and needs to be paid when you import goods in the Netherlands.
The VAT can be redeemed from the Dutch Tax Authority but your company needs to be registered in the Netherlands to be able to do that.
Such a registration comes with a large administrative hassle and isn’t necessary in most cases. For foreign, non-registered companies there is a solution: Fiscal Representation.
Fiscal representation means that a company registered in the Netherlands acts as a representative of the importing foreign company when it comes to filing taxes and maintaining the administration of the VAT.
A special permit is needed for representing foreign companies for tax purposes. SKY Group has such a permit.