The Netherlands VAT Guide
- 21% (Standard)
- 9% (Reduced)
Dutch VAT is known as Omzetbelasting (BTW or OB)
Dutch VAT numbers have 14 characters (NL + 9 digits + B + 2 digits).
Normally quarterly but monthly or annually can be considered depending on turnover.
The company has to report its VAT position by filing periodical VAT returns on a quarterly basis (standard tax period). The monthly reporting period can be opted for (or imposed by the tax authorities) if the VAT payable per quarter exceeds € 15.000. Yearly reporting period can also be opted for if the payable VAT balance does not exceed € 1.883 a year.
Periodical VAT returns must be submitted before the end of the month following the tax period. However, for foreign taxpayers not established in the Netherlands but registered for VAT purposes in this country, a two-month period applies.
A VAT credit is automatically refunded by Dutch Tax Authorities. No carry-forward mechanism.
The VAT due should be paid by filing deadline for the VAT return to which it relates.
The company is not required to file any summarizing annual VAT return in the Netherlands.
- € 800,000 (Arrivals)
- € 1,000,000 (Dispatches)
Postponed accounting via the VAT return is possible.
Dutch reverse-charge mechanism on import means that you are not required to pay the VAT on import immediately. The VAT can then be paid when you file your VAT return. In order to do this, Import VAT Deferment License (Article 23 permit) is needed which requires a foreign business to contract a tax representative (agent). The latter will declare the VAT that you are required to pay on the VAT return for that period and will deduct this VAT as input tax on the same VAT return. Then you will not be required to pay this VAT in advance on import.
If you do not have a tax representative, then you will be required to pay Customs the VAT on the import declaration.
The recapitulative statement (ESL) must be drawn up for each calendar month provided the threshold of € 100,000 of intra-EU transactions per quarter has been exceeded. Otherwise, periodicity is determined on a quarterly basis. ESL must be filed before the last day of the month following the reporting period (month/quarter) to which it relates.
- Importing goods into the Netherlands from outside the European Union
- Buying and selling goods in the Netherlands (excluding domestic reverse charge)
- Selling goods from the Netherlands which are delivered to customers outside of the Netherlands (business or private customers)
- Acquiring goods in the Netherlands from another EU country (Intra-community acquisitions)
- Holding inventory in the Netherlands for sale, distribution or consignment
- E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
- Organizing events in the Netherlands where attendees or delegates must pay admission