VAT in Netherlands : Complete Guide
Expanding your business into the Netherlands presents exciting opportunities, but it also means delving into the complexities of the Dutch Value Added Tax (VAT) system. In this comprehensive guide, we’ll explore all the essential aspects of VAT in Netherlands that foreign companies need to know. From VAT rates and declarations to the registration process and critical deadlines, this article will serve as your roadmap to successfully operating within the Dutch VAT framework and ensuring the VAT compliance. Whether you’re a multinational corporation or a startup, understanding the ins and outs of Dutch VAT is crucial for a smooth market entry and sustainable growth.
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VAT in Netherlands : VAT Rates
In the Netherlands, there are currently two VAT rates:
| Rate | Type | Goods / Services |
|---|---|---|
| 21% | Standard | Applicable to most goods and services. |
| 9% | Reduced | Food products, water supply, specific pharmaceutical products, certain equipment for individuals with disabilities, hotel accommodation services, passenger transportation services, and more |
Additionally, there are specific cases where a special VAT rate of 0% is applicable in the Netherlands. This rate is relevant for certain types of passenger transportation and also extends to particular activities involving writers and composers.
If you wish to verify the VAT rate for a particular product using its CN Customs Code, you can use a special tool provided by the Dutch administration, known as the Douane Belastingdienst Tariff Checker.
After delving into the diverse VAT rates applicable in the Netherlands and their relevance to your product and service offerings, you might be asking yourself how to translate this insight into action. That’s where our Dutch VAT calculator steps in.
We understand that deciphering Dutch VAT can be complicates due to the different rates and regulations. Our VAT calculator is designed to simplify this task for you.
This tool empowers you to effortlessly calculate your Dutch VAT, eliminating the need for manual calculations.
How to use our VAT in Netherlands Calculator? You now have access to our Dutch VAT Calculator, but how do you use it best? It’s very simple:
- Enter the invoice amount (net or gross) in the appropriate field.
- Choose the VAT rate in Netherlands that applies to your transaction. VAT rates in Netherlands vary between 21% and 9%, depending on the type of product or service.
- Our tool will instantly provide you with the VAT amount.
This tool is particularly useful for those who regularly make transactions with the Netherlands, and who need fast, reliable VAT calculations with up-to-date Dutch VAT rates.
When to register to VAT in Netherlands?
A company planning to expand its operations in the Netherlands must register for Dutch VAT under several circumstances.
Registration is required when engaging in various transactions such as:
- Classic import of goods into the Netherlands.
- Import of goods from a customs warehouse.
- Storage of goods outside a customs warehouse.
- Traditional purchase and resale of goods in the Netherlands.
- Intra-Community supplies of goods from the Netherlands to another EU member state.
- Engaging subcontractors from a foreign company for work on real estate projects in the Netherlands.
- Organizing events and conferences for companies and individuals in the Netherlands.
These are the key scenarios that trigger the requirement for VAT registration when a company expands its business in the Netherlands. Understanding and complying with these conditions is essential for successful operations in the Dutch market.
E-commerce companies that have a permanent establishment in one of the EU Member States and are selling products to customers in the Netherlands might not be required to register to Dutch VAT. If their only activity in the Netherlands are distance sales from another EU country to physical customers in the Netherlands they can pay the VAT via the OSS One-Stop-Shop Procedure in their own country.
However there are some situations when you as an e-commerce company need to register to VAT in the Netherlands. Here are some of them :
- You do not have a permanent establishment in the European Union
- You are using a warehouse on the territory of the Netherlands
- You engage in other type of transactions on top of B2C distance sales
Schedule a free consultation with our VAT expert to establish your needs based on your situation.
How to register to VAT in Netherlands
To register for Dutch VAT, non-established foreign companies must initially demonstrate their activity in the Netherlands, necessitating VAT identification. Before a Dutch VAT identification number is issued by the Dutch authorities, the taxable entity must furnish compelling evidence that they will engage in transactions requiring such an identification number in the near future.
Proof can take various forms, including contracts, order forms, warehouse rental agreements (applicable to distribution centers), import documents, transport records, invoices, or evidence of a merger or business acquisition.
Other documents required by the administration during the registration process are :
- An extract from the trade register of the country where the taxable entity originates.
- A VAT certificate issued in the country of origin.
- The Act of Incorporation of the company.
- A copy of the identity card of the managing director.
- A Power of Attorney document between Eurofiscalis Benelux and the foreign company.
- Proof of activity in the Netherlads.
- Bank details.
The process of obtaining a Dutch VAT number typically takes 1 to 2 months, provided that the submitted documentation is complete. Registration files can be electronically submitted.
Notably, VAT identification in the Netherlands is entirely cost-free and does not entail any taxation stamps or additional administrative fees.
VAT Declarations in the Netherlands
After you receive your VAT number in the Netherlands you are obliged to regularly submit VAT declarations to the Dutch tax authorities. Here are the different VAT declarations you might need to submit.
VAT Return in the Netherlands
The VAT return in the Netherlands serves as a tax declaration primarily designed to report your taxable actions within Dutch borders to the Dutch VAT authorities.
It is mandatory for individuals or entities holding an active Dutch intra-Community VAT number, and for foreign companies usually it should be submitted quarterly. Only those with fiscal representation by a tax representative based in the Netherlands are eligible to submit monthly VAT returns.
The deadline for the VAT return and VAT payments in the Netherlands is the last working day of the second month following the declaration period. For example, the deadline for the first quarter of 2024 VAT Return will be the 31st of May 2024.
VAT returns in the Netherlands must be filed electronically via the Belastingdienst portal.
To learn more about the VAT Return in the Netherlands visit our dedicated page : VAT Return Netherlands
The VAT payment is done via a bank transfer directly to the administration. The reference number required for payment can be found at the following page: Zoekhulp betalingskenmerk
If you have reported any VAT credit on your VAT Refund, this will be refunded to you automatically to the bank account previously communicated during your registration. The VAT Refund usually takes 2-3 month under the condition that you have complied with all your VAT obligations in the Netherlands. The administration might also decide to conduct a tax audit and request some additional documents concerning the VAT credit reported.
To learn more about the VAT Payment & Refund in the Netherlands visit our dedicated page : VAT Payment & Refund Netherlands
ICP Opgaaf declaration for Intra-community supplies
The ICP Opgaaf in the Netherlands is a declaration that documents all your intra-Community sales made during a specific declaration period. It only includes intra-Community transactions conducted with customers recognized for VAT purposes in other European Union member states.
For individuals or entities with an active Dutch intra-Community VAT number who have reported an amount in VAT grid 3b on their Dutch VAT return, filing the ICP Opgaaf is obligatory. It must be submitted in alignment with the same frequency as your VAT return filing schedule.
The ICP Opgaaf in the Netherlands should be filed electronically via the Belastingdienst portal.
To learn more about the ICP Opgaaf declaration in the Netherlands, make sure to visit our dedicated page: ICP Opgaaf Netherlands.
Intrastat in the Netherlands
Intrastat declaration is a statistical declaration used for tracking the movements of goods between the EU Member States. It is designed to inform the Dutch VAT administration and also the other EU administration about the specificity of the goods that are entering or leaving the Dutch territory.
It is a mandatory declaration for these companies that have exceeded the below thresholds (attention, these are the thresholds for 2024, they may change each year) :
- Arrivals : 5 000 000 € of annual value of the goods
- Dispatches : 1 000 000 € of annual value of the goods
As soon as one of these thresholds is exceeded you should be contacted by the Dutch administration that will provide you with the login and password to access your online account on CBS (Centraal Bureau voor de Statistiek) portal where you should file your Intrastat declaration.
The declaration needs to be filed each month and the deadline is the 10th day of the month following the declarative period so for example for May it will be the 10th of June.
To learn more about the Intrastat in the Netherlands, check out our page: Intrastat Netherlands
From July 1st, 2024 the old taxpayer portal in the Netherlands will definetely close and all entities filing any kind of tax returns (VAT Returns, EC Sales Lists, OSS returns, corporate income tax return) will have to switch to the new “Mijn Belastingdienst Zakelijk” taxpayer portal in the Netherlands. To learn more about it, read our article : Changes on the Dutch taxpayer portal NL from July 1st, 2024
Schedule a free consultation with our VAT expert to establish your needs based on your situation.
How to issue an invoice in the Netherlands?
When you sell goods or services on the territory of the Netherlands you must issue an invoice to the customer.
This invoice must adhere to specific requirements. Each invoice you issue should contain the following information :
- Seller's data - name, address, VAT number
- Recipient's data - name, address, VAT number
- Invoice number
- Date of issuance of the document
- Date of delivery of goods
- Metric: Description of goods delivered, quantity/weight,
- Metrics: net amount, VAT amount, gross amount
- VAT rate applied
- If 0% VAT rate was applied - annotation of the VAT exemption provision (with the directive number)
- If reverse charge was applied - a note on the provision for not being subject to VAT (with the directive number)
- The currency in which the invoice was issued
Importing to the Netherlands: VAT Rules
Like in any other EU country when you decide to import goods to the Netherlands usually at Customs you will be asked to pay the Import VAT tax. The rate of the import VAT is the same as the usual VAT rate in the Netherlands (standard rate 21%, reduced rate 9%). However there are also ways to defer the payment of import VAT in the Netherlands.
Here are 3 different ways to import goods to the Netherlands:
- Register to VAT as non-established company in the Netherlands. Use your NL VAT number and EORI number. Pay the import VAT tax at Customs at the moment of import and recover this VAT by filing your periodic VAT return. This option only applies to companies established in one of the EU Member State.
- Register to VAT in the Netherlands using a General Fiscal Representative. Use your NL VAT number and benefit from Article 23 license allowing you to defer the VAT payment
- Use services of a Limited Fiscal Representative. This option means that you will use the NL VAT number of your representative for the import and all other transactions on the territory of Netherlands. Your representative can use the Article 23 license to defer the import VAT and they will also handle your VAT declarations.
Important deadlines for VAT in the Netherlands
We know that your time is valuable so here is a list of important deadlines to remember when you’re registered to VAT in the Netherlands – in 2024 :
| Reporting period | Type of declarations to submit | Deadline |
|---|---|---|
| 4th quarter 2023 | Quarterly VAT Return & ICP Opgaaf | 28 February 2024 |
| 1st quarter 2024 | Quarterly VAT Return & ICP Opgaaf | 31 May 2024 |
| 2nd quarter 2024 | Quarterly VAT Return & ICP Opgaaf | 31 August 2024 |
| 3rd quarter 2024 | Quarterly VAT Return & ICP Opgaaf | 30 November 2024 |
| 4th quarter 2024 | Quarterly VAT Return & ICP Opgaaf | 28 February 2025 |
If the deadline for filing is a weekend day or a bank holiday, the deadline is NOT moved to the following working day so make sure you file the declarations and pay VAT on time.
It is also important to note that the Dutch administration needs to receive your payment on their bank account maximum on the deadline date – please take that into account when you are doing a bank transfer from a foreign account – these might take a few days to process.
VAT Compliance in the Netherlands : our tips
Expanding your business in new countries may be a challenge. Especially if you are doing it in different countries. Tax laws and regulations differ from country to country, deadlines are different, so it is a real challenge to stay compliant. That is why it is worthwhile to entrust your VAT matters to specialists like Eurofiscalis.
In the meantime, check out our few tips to ensure your VAT compliance in the Netherlands :
- Issue invoices in accordance with the regulations set forth in the Dutch VAT Act
- Keep records of transactions and archive them together with issued sales documents for at least 7 years.
- In the event of a tax audit, immediately answer the administration's questions and provide the required documents.
- Be sure to use the exchange rate approved by the Dutch tax authority if you use different currencies.
- File all the necessary declarations and pay VAT tax on time.
- Make sure to keep track of your Intra-community transactions to be alerted when you reach the Intrastat threshold.
Do you still have questions or doubts about the VAT in Netherlands? Don’t hesitate to book a free of charge consultation with our Benelux VAT expert !
Schedule a free consultation with our VAT expert to establish your needs based on your situation.
Rising VAT rockstar at Eurofiscalis I have a passion for unraveling the complexities of VAT regulations in the European Union (especially Benelux region). My mission is to empower readers to navigate the ever-changing VAT landscape with ease and to answer your questions in a clear and concise way.
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