Why Netherlands?

European Distribution

Benefits of Locating in the Netherlands

So why the Netherlands?    It’s not the largest economy in Europe and certainly not the largest country period.  It may not be the first place that may come to mind when deciding where to establish a distribution or operational hub in Europe….but it should be and here’s why:

Location, Location and of course Location……

The Netherlands is strategically located designed to easily service markets within the European Union, Eastern Europe, the Middle East and Africa. As the country has evolved into a premier European gateway it has developed the fourth largest European airport with Amsterdam’s Schiphol and the largest ocean port in Europe in Rotterdam.

  • The Netherlands is perfectly geographically located in the center of the three largest economies in Europe:    Germany, France and the United Kingdom
  • This geographic location makes it possible to easily serve all major European markets with minimum effort
  • Next day service available for nearly all of Europe from Lisbon to Moscow.
  • There are more than 170 million customers within a 300 mile radius and more than 244 million within a 600 mile radius!

Then of course there’s ….Taxation

  • VAT Deferment: Normally VAT has to be paid at the time of import. The layout of VAT payments creates a cash flow disadvantage.  However, the Netherlands, unlike most other EU Member States, has implemented a VAT deferment system. This allows a company to defer VAT payments, due at import, until time of sale.  Since VAT is passed on to the purchaser this results in a zero cash flow payment. And with a 21% VAT rate this is a pretty convincing argument on its own!
  • Low statutory corporate income tax rate: 20% for the first €200,000 and 25% after; compared to Germany’s 29.55% plus local tax rates of 7 – 17.4% and France’s 33.3 – 34.3%.
Reference: http://www.kpmg.com/global/en/services/tax/tax-tools-and-resources/pages/corporate-tax-rates-table.aspx  
  • Ruling Practice: Obtaining an “Advance Tax Ruling” (ATR) or “Advance Pricing Agreement” (APA) are very attractive Dutch tax law features. These policies provides companies certainty about their future tax position. APA provides certainty regarding transfer-pricing issues. The ATR provides certainty of tax liabilities in advance.
  • Innovation Box: Companies can benefit from an effective tax rate of only 5% for R&D income from self-developed patented and also from intangible assets.
  • Incentive for R&D: The Netherlands provides an incentive for companies that conduct R&D.  The incentives are in the form of wage tax and social-insurance contribution of 38% and 14%.
  • Wide Tax Treaty Network: Avoidance of double taxation with treaties with over 90 countries   These are only some of the great benefits of establishing your business or distribution service within the Netherlands.

Find out how Genesis can help!

Reducing Transportation Costs

Transportation costs are often a very large piece of a company’s logistics spend.  Finding avenues to reduce and control transportation costs however are often overlooked.    The cost to move freight along with importation costs are often looked upon as “they are what they are”.

However, there are some important factors and strategies that a logistics manager can consider to drive down transport costs:

Aggregate Volumes with Other Shippers

Aggregate your volumes with a partner.   One of the benefits of working with a company like Genesis is the ability to combine shipping volumes with other shippers.   When rates are negotiated with carriers the more volume the greater the discount.   We can help in providing some aggressive rates of both your domestic US, EU and international shipping.

Fewer Carriers

Hand-in-hand with aggregating your shipping demands with other shippers is reducing the number of carriers. Transport managers are tasked with finding the best carrier based on:

  • Meeting a required delivery service level
  • Best cost
  • Best overall service
  • Traceability and reporting functionality

Multiple carriers occur when the transport manager has negotiated the best contract for each specific lane without considering a larger picture.    By reducing the number of carriers or forwarders, the volumes of shipments the carrier will provide lower rates across the board.   Specific rates in certain lanes maybe higher, but when considering all lanes and various service levels the overall cost will be lower.


Each carrier will base their charges according to either the actual weight or by the dimensions of the package being shipped.    The charges will be based on the highest weight calculation.     It is important, when comparing rates, to know what formula is used to determine dimensional weight (sometimes referred to as volumetric weight).

Another aspect is reducing the size of your packaging to a size that first protects your goods but also does not exceed the actual weight of your package.

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