VAT in the Netherlands is an essential part of running a business in this country. Especially for companies operating in the e-commerce market. Understanding VAT rates and registration procedures is vital for entrepreneurs in international trade. In this article, you will find all the crucial information about VAT in the Netherlands in 2024.
Table of Contents
VAT in the Netherlands – What Do the Tax System and Rates Look Like?
There are three basic VAT rates in the Netherlands:
- Standard rate (21%) – this is the standard VAT rate that applies to most goods and services.
- Reduced Rate (9%) – applies to essential goods such as food, some medical services, and books.
- Zero rate (0%) – applies to the export of goods outside the European Union and certain services related to international transport.
The table below shows the basic VAT rates in the Netherlands in 2024:
VAT Rate Type | Rate | Examples of goods/services |
Standard | 21% | Most goods, advertising services, electronics |
Reduced | 9% | Food, books, medicines, domestic transport |
Zero | 0% | Exports, international services, some agricultural goods |
VAT in the Netherlands – How to Obtain a Dutch VAT Number? VAT Registration
VAT registration in the Netherlands is mandatory for businesses selling goods or services subject to VAT. The VAT registration process may seem complicated. However, understanding it is crucial to avoid issues with tax authorities.
Required documents for VAT registration in the Netherlands:
- A completed registration application,
- Proof of entry in the company register,
- Bank statement from the company’s account for the last 3 months,
- Proof of VAT registration in another EU country,
- An identity document,
- A copy of the act of incorporation (company agreement).
After submitting the appropriate documents, the company receives a Dutch VAT number. It consists of the prefix NL and 12 characters (9 numbers + 3 letters).
VAT in the Netherlands – Declarations. How and When to Submit Them?
VAT declaration in the Netherlands must be filed regularly by VAT-registered companies. The Dutch tax office generally requires quarterly returns. Yet, depending on the level of turnover, monthly or annual returns may also be possible.
The deadlines for submitting VAT returns in the Netherlands are strictly defined. Most businesses must submit their VAT return by the end of the month following each quarter.
Period | Deadline for submitting VAT declarations |
I quarter (January-March) | Until 30 April 2024 |
II quarter (April-June) | Until 31 July 2024 |
III quarter (July-September) | Until 31 October 2024 |
IV quarter (October-December) | Until 31 January 2025 |
Late submission of declarations can result in financial penalties. It is important to stay on schedule.
VAT and E-Commerce in the Netherlands
E-commerce businesses often have to deal with VAT regulations in different countries. As an EU member, the Netherlands requires online sellers to meet certain criteria if their turnover exceeds specific thresholds.
If EU sales exceed 10 000 EUR, VAT registration in the Netherlands is required. Even if the company operates outside the country. This means that selling to customers in the Netherlands requires charging and paying VAT under Dutch regulations.
VAT in the Netherlands – Summary
The Netherlands has one of the more business-friendly tax systems in Europe. Yet, understanding VAT rules is crucial for entrepreneurs engaged in international business. Proper VAT registration, timely filing of returns, and understanding applicable VAT rates are key to avoiding issues with the tax office.
If you run a business in the Netherlands or plan to expand your operations into the Dutch market, contact our experts. We can assist you with VAT registration and tax documentation management.
FAQ
What are the VAT rates in the Netherlands in 2024?
There are three VAT rates in the Netherlands: 21% (standard), 9% (reduced) and 0% (zero).
Do I need to register for VAT in the Netherlands if I sell products from another EU country?
Yes, if your sales exceed 10 000 EUR per year, you need to register for VAT in the Netherlands.
How do I get a Dutch VAT number?
To obtain a VAT number, you need to register your company with the Dutch tax office and submit the required documents.
When should VAT declarations be submitted in the Netherlands?
Usually, VAT returns are submitted quarterly. However, depending on turnover, they can also be submitted monthly or annually.
What happens if I submit a VAT declaration late?
Late submission of VAT returns can result in financial penalties and interest charges.
Does VAT in the Netherlands also apply to digital services?
Yes, digital services are taxed at the standard VAT rate of 21%.
Do I have to pay VAT on goods exported outside the EU?
No, exports outside the European Union are subject to the 0% VAT rate.
What goods and services are covered by the 9% reduced rate?
The reduced rate applies e.g. to food, books, transport services and some medical services.
Can I apply for a refund of overpaid VAT in the Netherlands?
Yes, companies can apply for a refund of overpaid VAT by submitting an appropriate application to the Dutch tax office.
What are the turnover thresholds beyond which I have to register for VAT in the Netherlands?
For sales within the EU, the threshold is 10 000 EUR per year.