Netherlands: New Decree on the VAT treatment of phone cards and mobile phone contracts

On 6 February 2013, the Dutch State Secretary of Finance published a new Decree regarding the VAT treatment of the sale, distribution and use of phone cards and mobile phone contracts. The Decree entered into force on 7 February 2013, although businesses have until 1 July 2013 to adapt to some of the new rules. The Decree includes a number of substantive changes. Additionally, the Secretary of State provides a number of definitions.

The impact of the Decree is not limited to telecommunications businesses, but also affects agents / distributors and content providers. All these parties may have to change parts of their processes and systems.Since in our view the Decree is not entirely in line with relevant case-law, it may be possible to take a different view from some of the positions expressed in the Decree. We have summarized the most important changes in our Newsflash in which we also place some critical notes.

If you have any questions on how this Decree might impact your business, please do not hesitate to contact your PwC Indirect Tax adviser or one of the persons mentioned in the Newsflash.

About Usman Mohammad

Assistant Tax Manager PwC the Netherlands email: usman.mohammad@nl.pwc.com Mobile: +31 6 53 90 45 38 Office: +31 88 792 59 71

I am an experienced manager and a valued member of the iVAT team of PwC in Amsterdam. I joined the Indirect Taxes group of PwC the Netherlands in 2007 immediately after graduation at the VU University in Amsterdam.