The Netherlands VAT / BTW Guide

The Netherlands VAT Guide for Businesses

The Value Added Tax (VAT) system of the Netherland (OB 1968) was introduced on 1 January 1969 replacing the cumulative turnover tax based on the Second Directive. The popular name of the tax is belasting over de toegevoegde waarde, abbreviated as BTW or btw.

Thirteen regional offices of the Belastingdienst (tax authorities) are responsible for the administration of VAT as well as other state taxes including personal and corporate income tax.

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What is the Standard VAT Rate in The Netherlands?

21%

Netherlands VAT Guide

Standard VAT Rate: 21%

The standard VAT tariff also called the high or general tariff, applies to the supply of goods and services (article 9(1) of the OB 1968), importation of goods and intra-Community acquisitions of goods where there are no relevant exemptions.

 

 

Reduced VAT Rates: 9% | 0%

The 9% tariff is also called the low tariff. This tariff is applied to many common products or services, such as food and drink, agricultural products and services, medicines, books, daily newspapers and magazines.

A 0% tariff applies to some services including cross-border transactions.

Requirement to Register for VAT

Every taxable person must first register with the Chamber of Commerce which will forward all the necessary information to the competent tax office.

Afterwards, they are granted a VAT identification number (containing 14 digits), beginning with a two letter -country code (NL), a taxable person’s business number (RSIN), general tax or social security number, a “B” and two subsequent numbers (varying from 01 to 99), example: NL001234567B01.

Launch of New Communication and IT System for eInvoicing

VAT Filing Frequency

VAT returns are generally filed quarterly. As an exception, VAT returns can be filed on a monthly or yearly basis.

Monthly VAT Returns

Monthly filing may be authorized upon the taxable person’s specific request (e.g. when reclaim VAT returns are filed regularly, for example, by exporters) or may be required by the VAT authorities (e.g. when the VAT amount payable on a quarterly basis exceeds €7,000 or when the taxable person is regularly late in VAT remittance).

Annual VAT Returns

Taxable persons whose VAT amount payable does not exceed €1,883 on a yearly basis may be authorized by the VAT authorities to submit an annual VAT return.

 

Deadlines

Quarterly VAT Returns

Most taxable persons are required to submit VAT returns each calendar quarter. VAT returns must be filed and VAT amounts paid within 1 month after the end of the tax period.

Monthly VAT Returns

The VAT return has to be submitted before the last working day of the month following the reporting period. The payment must be received by the VAT authorities on the same day.

Annual VAT Returns

Taxable persons filing yearly VAT returns are automatically authorized to submit the return by the end of March of the year following the tax period.

Invoicing Requirements for The Netherlands

Invoices should contain the following information (article 35a of the OB 1968):

  • Date of issue.
  • A consecutive number in a logical order; separate, consecutive, series of numbers may be used for different types of transactions or divisions.
  • Name, VAT identification number and address of the supplier of goods or services.
  • The customer’s VAT identification number, when:
    – Making zero-rated intra-Community supplies of goods; or
    – Making supplies for which the reverse charge mechanism is applicable (see Section 1.2.)
  • Name and address of the customer.
  • Quantity and a clear description of the goods or services supplied.
  • The date of supply of goods or (the completion of) services or the period of supply of services (the period during which the supplies are made may not exceed 1 calendar month) or the date(s) on which any advance payment falls due, insofar as the latter differs from the invoice date.
  • Taxable amount per VAT rate or exemption, the unit price excluding VAT, as well as any advance payments, discounts or rebates granted before or at the time of sale.
  • VAT rate(s) applicable.
  • The total VAT amount payable (in EUR), unless a specific scheme applies that does not allow this reference.
  • If a customer issues the invoice, the statement “invoice issue by the customer”.
  • Specific indication/statement that the supply is VAT exempt (i.e. reference to specific VAT exemption that is applicable) or zero rated on the basis of Table II a.6 of the OB 1968, if appropriate.
  • If the reverse charge mechanism is applicable, the statement “VAT reverse charged”.
  • Where appropriate, data to determine whether a means of transportation is new.
  • Where appropriate, reference to the special scheme for travel agents (see section 3) as follows: “special scheme for travel agents”.
  • Where appropriate, reference to the margin scheme (see section 4.1.) as follows, depending on the scheme applicable: “special scheme – used goods”, “special scheme – works of art” or “special scheme – antiques and collectors’ items”.
  • Name, address and VAT identification number of the VAT representative, if one has been appointed.

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Submission

To file a VAT return in the Netherlands, taxpayers must be registered with the International Office (Kantoor Buitenland) of the Dutch Tax and Customs Administration. Once registered, they will receive tax return forms periodically on which they can deduct the VAT paid.

If taxpayers supply intra Community goods and services from the Netherlands, they must submit a Statement of Intra-Community Supplies (Opgaaf intracommunautaire leveringen) at the end of every quarter via the form which can be obtained from the International Office of the Dutch Tax and Customs Administration.

Agents and Fiscal Representatives

Under Article 33a of the OB 1968, non-resident taxable persons must a appoint a Dutch fiscal representative in relation to their VAT obligations.

 

 

IOSS

Since 1 July 2021, VAT exemption on low value goods has been eliminated. Currently, all sales of goods imported in the EU are subject to the VAT of the country of destination of goods, regardless of the value of the imported goods.

The import one stop shop (IOSS) scheme is used for direct deliveries to customer in the EU. For the IOSS scheme, it is necessary to meet these conditions:

  • Deliver goods from outside the EU to a customer in an EU country.
  • Deliver directly to customers who do not have to submit a VAT return to private individuals.
  • The IOSS scheme is for shipments up to € 150. Insurance and shipping costs on the invoice do not count. A shipment may consist of a package containing different goods. For a shipment, a single transport document must be used.
  • Cannot use this scheme for ‘excise goods’, such as beer, wine, and tobacco products.
  • Responsible for the shipment of your products.

Due to the exit of the European Union and Single Market by the United Kingdom:

  • The sale of goods to clients located in the United Kingdom will no longer be considered as intra-Community supplies but will be considered as exports.
  • The purchase of goods from sellers located in the United Kingdom will no longer be considered as intra-Community acquisitions but will be considered as imports.

Intrastat

The Intrastat System was created to monitor the trade of goods between EU countries. In the Netherlands all relevant information should be passed on to Statistics Netherlands.
The declaration threshold for trade with EU member states is €800,000 for imports (ICV) from EU member states and € 1,000,000 for exports (ICL) to EU member states as of 1 January 2020.

Registration

Based on the VAT returns filed, STATEC is aware of Intra-Community movements of goods and sends a notification to the taxpayer to inform of obligations.

 

Deadlines and Filing Frequency

Businesses must declare their intra-Community exchanges on monthly basis at the latest:

  • On the 6th working day of the month following the month of reference, if the report is submitted on paper;
  • On the 16th working day of the month following the month of reference, if the report is submitted electronically.

Submission

Intrastat data can be submitted electronically to Statistics Netherlands via the International Trade in Goods (IDEP) platform.

 

Changes Following Brexit

As of the declaration for January 2021, the following adjustments apply:

  • Partner country: country code XI for Northern Ireland, the rest of the United Kingdom will no longer be included in the Intrastat declaration (no XU nor GB).
  • VAT-number counterparty (only for the dispatch declaration): Northern Irish companies are mentioned with their VAT number starting with XI.
  • Country of origin: country code XI is also used here for Northern Ireland; for the rest of the United Kingdom it is XU.

 

Recent VAT Updates in The Netherlands

Sept 2022: Additional Assessments update

August 2022: Registration of non-EU platforms and reporting platform operators update

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