In response to questions about the impact of Dutch taxes on marine bunker prices in regard to rising fuel prices world-wide we have summarized the position in the Netherlands in this article.
For international ocean-going vessels calling at Dutch ports, excise duties and VAT have almost no direct impact on the cost of bunker fuel. Thanks to long-standing exemptions specifically designed for commercial international shipping, shipowners enjoy favourable tax conditions when bunkering in Rotterdam, Amsterdam and other Dutch ports.
- Excise Duty: Bunker fuels such as VLSFO, MGO and HSFO are fully exempt from Dutch excise duty. This exemption is in line with the EU Energy Taxation Directive, which requires member states to exempt fuel used in international maritime transport.
- VAT: The supply of bunker fuel to qualifying sea-going vessels benefits from the 0% VAT rate. Most related bunkering services also qualify for zero-rating. The standard 21% VAT rate applies only to pleasure craft and certain inland waterway operations.
The bunker price quoted to international vessels in Dutch ports consists almost entirely of the global market price (Platts or equivalent) plus the supplier’s operational and delivery costs. Neither excise duty nor standard VAT is charged on the invoice for eligible sea-going ships.
Please note that for inland navigation and certain shortsea operations within the EU, the excise duty and VAT exemptions may be limited or not apply at all, it is worth checking the position before any purchase is made.
In summary, bunker fuel provided for international shipping will not be subject to Dutch excise duty or VAT. Should you require specific advice for a vessel call, assistance with charterparty clauses, bunker documentation or local supplier arrangements, please feel free to contact us at correspondents@nnpc-correspondents.com.