Outsourcing web development to India from Netherlands

IST is 4h30m ahead of the Netherlands, or 3h30m during Central European Summer Time, from the last Sunday in March to the last Sunday in October. Agree on call times that fit both working days.

India is not on the European Commission's list of countries recognised as providing an adequate level of data protection under Article 45 of the GDPR (AVG). The Autoriteit Persoonsgegevens (AP) says another appropriate safeguard, such as standard contractual clauses, can be used where there is no adequacy decision. It also points to measures such as encryption and pseudonymisation, which need to be assessed case by case.

Put the processing agreement in writing. Under Article 28(3) of the GDPR, a controller and its processor must have a written agreement covering matters such as instructions, confidentiality, security and sub-processors.

India's Digital Personal Data Protection (DPDP) Act, 2023 also has a provision for a person in India processing personal data of individuals outside India under a contract with a person outside India. Most Data Fiduciary obligations, data principal rights in Chapter III and the transfer rule in section 16 do not apply in that situation, but responsibility for compliance, including by Data Processors, and reasonable security safeguards against personal data breaches still apply. The relevant provisions come into force on 13 May 2027.

When a business established in the Netherlands, or with a fixed establishment there, buys services from a business established outside the EU, btw is usually reverse-charged to the Dutch buyer. The buyer declares it in box 4a of its btw return and, if entitled to deduct it, also claims it as input tax.

A Dutch business with btw-exempt turnover must still file a btw return declaring reverse-charged btw on services it buys. It has no right to deduct that btw.

Under India's Integrated Goods and Services Tax (IGST) Act, 2017, exports of services are zero-rated, but a service must meet the Act's conditions to qualify as an export. These include the locations of the supplier, recipient and place of supply, permitted payment and the relationship between the supplier and recipient.

An Indian invoice for export of services must include the applicable export endorsement, along with the recipient's name and address, the address of delivery and the name of the country of destination.

Agree on invoice and payment timing with the supplier. Under India's Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, an Indian exporter must realise and repatriate the full value of exported services within nine months from the invoice date, or twelve months if the export is invoiced or settled in Indian rupees. Its Authorised Dealer bank may allow more time on request.

If someone else will make the payment, discuss it with the supplier in advance. An Authorised Dealer bank may permit payment for an export by a third party if it is satisfied the transaction is bona fide.

If you are considering arbitration, discuss the contract terms with a qualified adviser. India signed the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards on 10 June 1958 and ratified it on 13 July 1960, declaring that it applies the Convention only to awards made in another contracting State and to differences considered commercial under its national law.

The AP supervises personal data transfers by organisations with their main establishment in the Netherlands. Use these steps when preparing your project.

• Agree on call times across the time difference.
• Assess safeguards for any personal data sent to India.
• Put a processing agreement in writing where required.
• Check how reverse-charged btw applies to your purchase.
• Check the export invoice details with your supplier.
• Agree on payment timing and flag any third-party payer.
• Discuss dispute terms with a qualified adviser.