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INTERNATIONAL VAT GUIDE

Last Updated: December 6, 2024

VAT Guide for Businesses with Customers in Netherlands

This article provides a summarized overview of VAT (Value Added Tax) in the Netherlands, including applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within the Netherlands or with Dutch customers.

Overview

The VAT system in the Netherlands, known locally as Belasting over de toegevoegde waarde (BTW), is governed by the VAT Act of 1968. The tax applies to most goods and services within the Netherlands, including imports, with specific mechanisms for digital and cross-border transactions. VAT compliance follows EU VAT directives and local Dutch regulations.

Currency

Euro (€)

VAT Number Format

NL followed by 9 digits and a 3-character suffix (e.g., NL123456789B01)

Fiscal Representation

Yes, required for non-EU businesses needing import VAT deferment (Article 23 license).

Voluntary Registration

Yes, available under Dutch VAT Act for businesses not meeting the threshold.

VAT Rates in Netherlands

Rate Rate Type Description
21% Standard Rate Applies to most goods and services
9% Reduced Rate Food, medicines, books, and cultural services
0% Zero Rate Exports and intra-Community supplies of goods

Supplies to ships and aircraft used for international transportation • Supplies of solar panels for installation on or near residential properties

VAT Registration in Netherlands

Business Type VAT Registration Threshold
Domestic Businesses  Thresholds Registration Established Business: None
Non-established: None
Intra-Community acquisitions EUR10,000
Electronically supplied services EUR10,000
recovery of VAT refund for non-established entities is subject to certain conditions
Non-Resident Businesses No threshold; registration required for any taxable transactions
Distance Selling (EU only) EUR 10,000 per annum under the OSS system

VAT Filing and Payment Deadlines

Business Type VAT Registration Threshold
Domestic Businesses  Thresholds Registration Established Business: None
Non-established: None
Intra-Community acquisitions EUR10,000
Electronically supplied services EUR10,000
recovery of VAT refund for non-established entities is subject to certain conditions
Non-Resident Businesses No threshold; registration required for any taxable transactions
Distance Selling (EU only) EUR 10,000 per annum under the OSS system

Digital Services VAT Information

VAT on Cross-Border Electronically Supplied Services Yes
VAT Rate on Digital Services 21%
Threshold for Registration EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses
VAT on B2B Sales Reverse charge mechanism applies

Note:

The Netherlands follows the EU’s ESS VAT rules. Businesses providing digital services (e.g., website hosting, software, digital media) must apply the VAT rate based on the consumer’s location, often utilizing the OSS system for cross-border services.

Digital Services in Scope

  • Website supply, web-hosting, and distance maintenance of programs and equipment
  • Supply and updates of software and applications, including mobile apps
  • Streaming or downloading of music, films and games
  • Provision of images, text, information, and databases

Exemption

Downloads or access to electronic newspapers and periodicals may be exempt under specific conditions, typically for educational or publicly accessible content that serves public interest.

E-invoicing Requirements

The Netherlands encourages e-invoicing for B2B and B2G transactions through the PEPPOL network, with mandatory e-invoicing for suppliers to public administrations. Important details on invoices must include:

  • Invoice number and date
  • Supplier and customer VAT numbers, if applicable
  • Description of goods/services, VAT rate, and total VAT amount

Digital Reporting Requirements

Digital reporting is required in the Netherlands for cross-border and certain domestic transactions, enabling Dutch businesses and foreign suppliers to comply with VAT obligations under Dutch law.

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Disclaimer: The information in this article is for general informational purposes only and may not cover all aspects of Dutch VAT. Consult one of our tax professionals for specific guidance regarding your business.

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