Dutch VAT registration

Value added tax (VAT) — known as ‘belasting op de toegevoegde waarde’ (BTW) in the Netherlands — was introduced in 1969. The Belastingdienst — the Dutch tax administration — is the government organisation responsible for imposing and collecting this consumption tax.

VAT rules and requirements in the Netherlands broadly fall in line with those of other EU countries, as per the EU VAT directive.

Dutch VAT rates

Netherlands, like all EU member countries, follows the EU VAT Directive on VAT compliance. However, it is still free to set its own standard (upper) VAT rate. The only proviso is that it is above 15%. Suppliers of goods or services VAT registered in Netherlands must charge the appropriate VAT rate, and collect the tax for onward payment to the Dutch tax authorities through a VAT filling: see Dutch VAT returns briefing.

The current rates are:

Rate	Type	Which goods or services
21%	Standard	All other taxable goods and services
9%	Reduced	Foodstuffs (excluding foodstuffs for animal consumption); some soft drinks; water supplies; certain pharmaceutical products; certain medical equipment for disabled persons; domestic passenger transport (excluding air travel); intra-community and international road, rail and inland waterway passenger transport; books (including e-books); newspapers and periodicals; admission to cultural events and amusement parks; writers and composers; certain renovation and repair of private dwellings; certain cleaning of private households; hotel accommodation; restaurants (excluding alcoholic beverages); take away food; bars, cafes and night clubs; admission to sports events; use of sports facilities; minor repairs of bicycles; shoes and leather goods; clothing and household linen; hairdressing; cut flowers and plants for decorative use (some exclusions) and food production; some works of art, collectors items and antiques
0%	Zero	Taxation of gold coins; intra-community and international passenger transport by air and sea

Dutch VAT compliance

If a foreign company is liable to account for Dutch VAT, and has obtained a VAT number, it must then comply with the local VAT rules.

This covers:

Preparing invoices with the disclosure details outlined in the Dutch VAT law.
Electronic invoices with proper signature, authenticity and agreement by the recipient.
Maintenance of accounts and records, which must be held for at least 7 years.
Correct invoicing of customers for goods or services in accordance with the Dutch time of supply VAT rules.
Processing of credit notes and other corrections.
Use of approved foreign currency rates.

What is the tax point for Dutch VAT?

The tax point (time of supply) rules in Netherlands determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).

For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.

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