In 2012, the Dutch State Secretary of Finance decided to introduce a voluntary reverse charge on supplies of mobile phones, integrated circuit products ("IC" products), game consoles, (tablet) PCs and laptops. The background of the introduction of a reverse charge mechanism for such products was a strong indication of VAT carrousel fraud. Per 1 April 2013, the decision of the Dutch State Secretary of Finance has been codified and a mandatory reverse charge mechanism is applicable on these types of products.
As of 1 April 2013, suppliers of mobile phones, integrated circuit products ("IC" products), game consoles, (tablet) PCs and laptops should mandatorily apply the VAT reverse charge mechanism on supplies to their customers of these products with a value above EUR10,000. This threshold is applicable on a single shipment by each type of goods and should avoid that entrepreneurs need to apply the reverse charge mechanism on each low value supply. However, artificially split shipments will be regarded for the EUR10,000 threshold as one single supply and are as such subject to the reverse charge mechanism. Furthermore, the reverse charge mechanism is applicable in all stages prior to the supply of the final product.
For the application of the reverse charge mechanism, the definition of a mobile phone includes that which in ordinary language should be considered as mobile phones, including smart phones, pre-paid phones and handsets with a mobile phone function. A mobile phone that will be supplied together with a subscription, telephone accessories, walkie-talkies, Wi-Fi phones, 3G data card and Wi-Fi cards are explicitly excluded from the mandatory VAT reverse charge mechanism.
The IC reverse charge is especially applicable for IC goods with CN-classification 8542 31 90. Examples in this respect are CPU's, MPU's, MCU's, chipsets and circuits auxiliary to these units. If the IC goods are already integrated in a final product, the reverse charge mechanism is in principle not applicable on the final product, unless this product falls under one of the other types of products as listed above.
The definition of game consoles also includes that which in ordinary language should be considered as game console. In any case, the reverse charge mechanism should be applied on game consoles with the CN-classification 9503 00 95 and 9504 50 00. Finally, for the application of the reverse charge mechanism, (tablet) PCs and laptops should be defined as portable automatic data processing machines that consist of at least a central processing unit and a monitor. This definition includes a notebook, netbook and ultra book.
If the VAT reverse charge mechanism applies, the supplier should refer to this mechanism on its invoices instead of charging VAT. In this respect, the reference "VAT reverse charged" is sufficient. Consequently, the customer should self-charge the VAT due and this VAT due can in principle be reclaimed in the same VAT return of the customer.