NBCC were pleased to interview Abi Reddoub, Tax Partner at InCVRIA.

INCVRIA is an independent Tax Boutique office. They use their specialized knowledge of national, international and EU tax law for their clients. INCVRIA's practice focuses on International Tax Law, Company Law, and Tax Procedures.

Can you tell us about INCVRIA?
We are a tax boutique firm focusing on international taxation. Our practice covers all areas of taxation with an emphasis on cross-border situations. A lot of our work is related to international VAT, transfer pricing and tax dispute resolution. We are located in Rotterdam.

What is special about the company? Why might a client want to come to you for help?
We boast deep technical knowledge and diverse commercial experience to tackle highly complex cross-border tax matters, whereas most Dutch tax firms are focused on national taxation. As a boutique firm, we have a more specific client base and can focus more on delivering personalized, client-centred services to the clients we can help best.

Regarding investments, are there opportunities or fundamental problems within the Dutch or British tax system that stimulate/hinder investment? What are the implications for NL-UK / UK-NL investments?
As is probably well-known, the Netherlands has a system similar to the British Postponed VAT accounting (PVA) recently introduced by HMRC on 1 January 2021. A VAT deferral' article 23' license can be granted in the Netherlands to businesses established in the Netherlands and foreign businesses that are not established in the Netherlands but have appointed a fiscal representative for VAT purposes in the Netherlands. This allows for the deferral of payment of import VAT until the moment of filing the periodical VAT return. It applies in other countries, but only under very strict conditions and in specific situations. As import VAT due does not have to be pre-financed can play a major role in the decision to route a flow of goods via the Netherlands as a portal to the EU market.

What do you think of the Dutch investment climate compared to the UK's? What advice do you give to the Dutch government?
The Netherlands is consistently among the largest recipients of foreign direct investment in the world. One of several challenges is that businesses are finding it difficult to recruit qualified staff, as reflected in the low unemployment rate. With an ageing population, the Dutch government needs to address this issue.

What were the most frequently asked questions on cross-border tax?
Most questions deal with compliance and double taxation problems that can occur when individuals or companies are active across borders. EU VAT law is also considered quite complex as it still allows EU Member States to introduce their own exceptions and partial revocations from the European VAT regulations.

With the EU's proposed digital tax plan, there have been a lot of discussions recently on the digital economy. What are your views on the subject?
Businesses operating in the EU may wish to start reviewing their readiness for the changes in respect of the required system changes. I suspect the estimated costs of implementation for businesses may be significant, and digital tax administration to have a high impact on tax operations over the next five years.

What is the role of tax professionals to be ready for a constantly changing / challenging environment?
I believe the increasing amounts of compliance work will more and more shift to providers that have invested in technology, and the primary role of tax professionals will be redefined from compliance and reporting into more strategic and advisory and to better use of tax talent.

Can you give a few examples of how INCVRIA can help NBCC members?
We like assisting members with VAT issues - we can take care of registration, filing, compliance and tax representation - or assisting them with corporate (re)structuring or setting up a branch office in the Netherlands or the UK. We also have a growing litigation practice.

Why did you join NBCC? 
We have several Dutch clients with investments in the UK and British clients with branch offices in Europe. I had the privilege of studying for two years in the UK (King's College London), in the Strand Building, when I was younger, so I'm hoping to meet old friends and make some new ones.

What are your plans for future growth that you can share with NBCC members? 
There is an interesting development, but we can't announce it yet. Hopefully, later this year.

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