VAT Standard rate
The VAT standard rate in the Netherlands in 2024 is 21%.
VAT Reduced rate
You can apply a reduced rate of 9% for the following products:
- Food;
- Water;
- Agricultural products;
- Medicines and auxiliary products;
- Art, collectibles, and antiques;
- Books and periodicals.
You can apply the 0% rate for the following deliveries:
- Goods that you deliver abroad;
- Goods that have not yet been imported;
- Goods that you supply to the VAT warehouse or on it;
- Supply of ships and aircraft;
- Fishing;
- Excise goods.
See the summary of the EU VAT rates.
Deductible VAT
If goods or services were used to make taxable supplies in the Netherlands, VAT in input invoices might be credited.
Examples include: you bought goods from an entrepreneur in another EU country or you were transferred VAT
Thresholds
From the 1st of July 2021, the distance selling thresholds were withdrawn and replaced by a unified threshold of €10,000 for all EU members.
In other words, VAT should be charged at the VAT rate of the customer’s country of residence by companies whose annual taxable cross-border turnover is over €10,000.
Registration procedure
You must send the following attachments to this form:
- Documents showing which industry you are active in your home country;
- If you are registered with a foreign Chamber of Commerce: a certificate of registration;
- If you have an agent: a copy of the authorization;
- If you are resident in a non-EU country: a tax statement from that country;
- If the entrepreneur is a natural person or partner: a copy of the ID for any natural person who does not have a Social Security number;
- If your company has a different legal form: a copy of the instrument of incorporation.
Tax representative
There is no requirement to appoint a tax representative in the Netherlands.
Keeping records
In the Netherlands, there are strict rules on the layout and format of VAT records to be kept by companies or their tax agents. Records must be kept by the taxable person or by the keeper of its accounts and reported to the competent Tax Agency.
You will need to keep regular notes on your ICVs, consisting of the invoices you received and the expenses you spent on the ICVs. You are required to keep your records for 7 years.
VAT payment date
If you are a budding entrepreneur the tax service will send you the first declaration for aspiring entrepreneurs in electronic form or on paper.
You need to pay VAT, but you have not yet received a VAT return from the tax service. In this case, always request a VAT return within 1 month after the period for which you must pay VAT.
Filing VAT returns
A taxpayer must transmit tax returns to the Btw-Alert by electronic means.
If you submit your tax returns monthly, you must submit your tax return no later than 2 months after the reporting period.
For example, the declaration for January must be submitted no later than the last day of March.
VAT rates in the autonomous regions of the Netherlands
The autonomous regions of the Netherlands are:
- Aruba (ABW)
- Curaçao (CUW)
- Sint Maarten (SXM)
- Bonaire, Sint Eustatius, and Saba (BES islands).
These regions have a high degree of self-governance but remain part of the Kingdom of the Netherlands. The autonomous regions of the Netherlands have their own unique VAT rates or consumption taxes that differ from the national rates:
| Region | Code | Country Code | Standard Rate | Reduced Rate |
| Aruba | ABW | NL-AW | 6% | 0% |
| Curaçao | CUW | NL-CW | 6% | 0% |
| Sint Maarten | SXM | NL-SX | 5% | 0% |
| Bonaire, Sint Eustatius, and Saba | BES | NL-BQ | GCT: 8% | GCT: 0% |
Note: VAT in the BES islands is replaced by the General Consumption Tax (GCT).
E-invoicing in the Netherlands
The obligation to use electronic invoices has already been implemented in phases, with ongoing updates and possible future expansions.
2017
- Issuing e-invoices became mandatory for suppliers to central government entities.
- Receiving e-invoices became mandatory for all central government entities.
2019
- Issuing e-invoices became mandatory for all suppliers dealing with the central government.
- Receiving e-invoices became mandatory for local government bodies.
2024-2025 (Future Projections)
- Issuing e-invoices is expected to become mandatory for a broader range of businesses, including those dealing with local government entities and possibly in certain private sectors.
- Receiving e-invoices is likely to become a requirement for more businesses, ensuring all entities can process e-invoices in a standardized format.
2026 and Beyond:
- Potential introduction of mandatory e-invoicing for all VAT-registered businesses, including small and medium enterprises (SMEs).
- Continued expansion to ensure complete coverage across all sectors, possibly including non-resident businesses operating in the Netherlands.
Current Status for Non-Dutch Companies:
There is currently no legal obligation for non-Dutch companies to issue or receive e-invoices unless they are directly dealing with Dutch government entities.
However, as the e-invoicing system in the Netherlands continues to develop, future regulations might introduce requirements for non-resident businesses as well.
Customer Requirements:
Some Dutch customers, especially in the public sector or larger companies, might request e-invoices to enhance efficiency and compliance. Businesses operating in the Netherlands should be prepared to accommodate these requests.