VAT
Overview

Overview of VAT in The Netherlands

If you set up a business in The Netherlands, it’s important to consider the VAT (Value Added Tax) requirements and to understand how VAT works in The Netherlands.

Companies conducting business with or from the Netherlands are in most cases liable for Dutch VAT. When a company is liable for Dutch VAT they will have to obtain a VAT number (please see our article how to obtain a Duch VAT number)

Once your company has obtained a VAT number or started its business in The Netherlands, it should consider the following VAT requirements::

 

VAT tariffs in the Netherlands

In the Netherlands there are 3 VAT rates applicable:

 

  • 0% rate

  • 9% rate

  • 21% rate

0% rate

The 0 percent rate is applicable to entrepreneurs conducting business from the Netherlands to foreign countries. For example:

  • The supply of goods from the Netherlands to another EU country;

  • Services provided within the Netherlands, for example, services related with cross-border transactions;

  • International transport of passengers.

More information about the 0% rate can be found on the website of the Belastingdienst and on this website

 

Please note that when the 0% rate is applicable you can still deduct VAT. When a company is VAT exempt this company cannot deduct VAT.

 

9% rate 

As from the first of January 2019 the low rate of 6% is increased to 9%. The 9% rate is applicable on basic necessities of life, such as:

  • food

  • drinks

  • agricultural products and services

  • medicines

  • books

  • etc

At the website of the Belastingdienst you can find an extensive overview of the type of goods and services to which the 9% rate is applicable. This list is only available in Dutch.

 

21% rate

When the 0% or 9% rate are not applicable then you must charge the standard VAT rate of  21%.

INCO Business Toolkit

YOUR BUSINESS TOOLKIT

FREE ACCESS TO ALL THE THINGS YOU NEED TO KNOW

Our experts have combined their knowledge and strengths to create a tool we call the Business Toolkit. 

The Business Toolkit will help you and entrepreneurs from around the globe to truly understand the Dutch market, regulations and laws. And will enable you to take a deep-dive into the topics displayed below. 

This way you will easily get up to speed with our Company formation process, Dutch Tax & Accounting and our corporate services. 

Make sure to check out our handy checklists, explainer video's and extensively written Whitepapers too!

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