A 9% rate applies to for example food and beverages for human consumption (except for alcoholic drinks), water, pharmaceutical products and medical aids for persons and animals, books and magazines, passenger transport, hotel accommodations, entrance for sports events, theatres, cinemas, music performances, zoos, etc. VAT tax returns have to be filed with the tax authorities on a monthly or quarterly basis, depending on the size of your business. This page is for reference purposes only. When you purchase goods from outside the EU (i.e. In the Netherlands, the maximum limit to be able to deliver goods without paying Dutch VAT is €100,000. In compensation, any BTW paid on costs incurred can be reclaimed. VAT as incorporated in Dutch tax law is based on EU Directives. Within 6 months after the calendar year in which the VAT has been incurred the foreign entrepreneur must file a request for a refund. This obligation applies equally to paper and electronic invoices. Ways to pay Make sure your payment will reach HM Revenue and Customs’ (HMRC) bank account by the deadline.You may have to pay a surcharge if you do not pay on time. The moves follow changes in VAT rules brought in by HM Revenue and Customs on 1 January. the country of destination. The Dutch supplier may only do this, however, if you give him your German VAT identification number (see section 3.2.1). You supply a service if you are paid for a service that is not the supply of goods. The importer then applies for a Dutch Article 23 License which enables the VAT to be recorded, without a cash payment, through the VAT return in the month of import. The same can apply if you do not have a business in the Netherlands but you are supplying goods or services to Dutch customers. Dutch VAT rates are based on the European Union's VAT Directive. Here are the main tax types that you will most likely encounter in the Netherlands: If you are interested in our services, please feel free to contact us via e-mail or to call us at our office in Rotterdam at the number +31 (10) 2010466 or our office in Amsterdam at the number + 31 (20) 5709440, Clarifying the VAT implications of (cross border) leases, Dealing with registration and compliance matters, The VAT identification number of your customer (if required by the nature of the supply), Your full name and address as well as the full name and address of your customer, A description of the goods and services supplied (second hand goods are to be identified), The quantity of the goods supplied or services rendered, The date the goods were supplied or the services were rendered, The net amount subject to VAT, the applicable VAT rate and the amount of VAT due, Identification of exempt supplies or supplies where the customer has to pay the VAT (self assessment or "verleggingsregeling"), Identification of tax representatives if used. The Dutch rate is average in comparison to other EU member states (see under the rate in other EU - member states ) . Foreign entrepreneurs who have no taxable presence for VAT purposes in the Netherlands are eligible for a refund of the Dutch VAT they have incurred. VAT is – in general - a consumption tax, which is supposed to be ultimately born by the consumer (i.e. For the purpose of the EU directive, digital services include the electronic transmission of software, games and information in a broad sense, as well as the subscription to radio and television channels, pay per view and other services supplied online via (international) databases and networks. If that is the case then usually you will be required to pay VAT in the Netherlands. On Budget Day, September 18, 2018, the Dutch government released the 2019 Budget, which includes the proposals for amendments to the Dutch tax laws (i.e. VAT, Value Added Tax (Belasting Toegevoegde Waarde, BTW in Dutch), is a tax that is levied on the value added by an entrepreneur to a product or service. We can answer the most obvious question first. It is furthermore noted that records are to be kept of copies of invoices for a period of at least seven years. This includes the obligation to put your customer’s VAT number on the invoice and provide additional information identifying the VAT liability of certain goods/services. The Dutch value added tax is a consumption tax, which is supposed to be borne by the consumer. Get in touch with us today. Not all VAT is refundable. import), these goods are subject to VAT at the moment the goods are imported in the Netherlands (or any other EU country). As a reference for native English speakers, BTW is the Dutch acronym for VAT. This mainly involves the supply of goods from the Netherlands to another EU country and some services related to cross-border transactions; such as services work on goods that … In this request the original invoices should be provided. Special rules apply to holding companies. Supplies of goods to customers outside the EU (i.e. When US companies deal with value added tax “VAT” challenges in Europe, whether newly established or well established, they often fall into the same avoidable traps. The VAT is often reverse-charged to the person receiving the service. The normal limitations apply. If you are based in the Netherlands and you do business in other countries, the 0% VAT rate may apply. The standard VAT rate in the Netherlands is 21%, with a reduced rate of 6% for foodstuffs, books, passenger transport, hotel accommodation, and other goods and services. All EU member states must adhere to the Directive, and the standard VAT rate must be 15% or higher. We provide Dutch Vat Number Register Process Guidance. Jeroom Remmers is the director of the TAPP Coalition. If you supply goods or services in the Netherlands to a Dutch company or legal entity with its registered office in the Netherlands, you are in principle required to pay Dutch VAT. The Belastingdienst (Dutch tax office)collects taxes through a variety of streams. As you work to register your businesses in the Netherlands, it is useful to know which tax office applies to you and how you c… Sometimes, it is a combination of … Dutch words for vat include vat, bak, kuip, ton, teil, mengen and in een vat doen. A 21% Dutch BTW rate, also called the high or general tariff, applies to all other VAT taxable activities; Some goods or services are exempt from BTW (0%), such as international activities. Specific requirements apply to evidence to be provided to prove that the foreign company is indeed an entrepreneur according to the Dutch definition. In brief the system for imports and exports and intra-community supplies works as follows. It is administered by the Dutch Revenue, and is based on the original Dutch VAT law with subsequent administrative decisions and rulings. VAT is now being collected at the point of sale rather than at the point of importation. A 0% rate applies to exports (i.e. What does it cost to file a Dutch VAT return? VAT should be charged on the total price of the car - this includes any accessories or associated costs, such as delivery costs. to non-EU countries) and intra-community (EU) supplies (see below). In particular for intra-community delivery of goods extensive reporting requirements exist. For supply of goods to customers (entrepreneurs) in other EU member states (so-called intra-community supply) you are entitled to apply the 0%-rate if you meet certain requirements, such as that the recipient must be a VAT-paying business. This is for instance the standard rule if a foreign company provides services to the Dutch market. Like in most countries, leasing is a separate part within the Dutch VAT system. Whether you're a Dutch citizen or an expat, you are required to pay taxes if you earn money while living in the Netherlands. You will also pay VAT if you import goods from countries outside This means that the principles and the structure of the VAT regime are in general the same throughout the whole EU. If you are interested in our services, please feel free to contact us via e-mail or to call us at our office in Amsterdam at the number +31 (20) 5709440 or our office in Rotterdam at the number + 31 (10) 2010466. Dutch VAT rates The Dutch standard VAT rate is 21% and applies to most goods and services. The means that businesses function as the withholding agent for the Dutch tax authorities with respect to VAT. In essence, the VAT system should be tax neutral for businesses which are fully subject to the VAT. Any non-resident trader supplying goods in the Netherlands may face the obligation to Dutch VAT register , comply with the local laws, complete Dutch returns , Intrastat and other declarations. It is relevant for your business to comply with the invoicing requirements in order to prevent penalties. Member states are however free to determine some aspects of the regime such as their domestic rates and turnover limits for registration. However, if your enterprise is established outside the Netherlands, you are subject to Value Added Tax (VAT) regulations, also known as “turnover tax,” if you import goods into the Netherlands. If you start a business in the Netherlands you are required to register for VAT purposes. If a VAT return is not filed within the deadline, or VAT due is not paid within one month after the end of the VAT period, a fine will be due. Although VAT is in essence a consumer tax, it is to be charged throughout every stage of the supply chain. With regard to the import of certain goods import duting may also become due. Find more Dutch words at wordhippo.com! In such case it is only allowed to deduct input VAT to the extent that it relates to taxable transactions (pro-rata calculation). Dutch VAT – Rates & Registration If a company not established in Netherlands (Holland) is providing ‘taxable supplies’ of goods or services in Netherlands, it may have to obtain a non-resident VAT registration. However, this is often reverse-charged to … When you start up a business in the Netherlands or if you intend to supply goods or services to Dutch customers you will be confronted with the Dutch system of Value Added Tax ("VAT" in Dutch "BTW"). In case a loan was not made, the property taxation in the Netherlands for a non-resident is of 1.2% of the WOZ value (the price of the home at the official listed value). The Dutch rate is average in comparison to other EU member states (see under the rate in other EU - member states). In general, the VAT must be included on the invoice issued by the supplier of goods or services. How does the Dutch VAT system work? It should be noted that for a number of commodities, deferment is compulsory. Therefore you only pay the Dutch VAT if you supply a service in the Netherlands and if … As of 2021 changes to the EU VAT-system with respect to e-commerce will be implemented. From €1,350 to €1,883 there is a simplification gradually increasing VAT obligations, but where the VAT due exceeds € the 2019 Dutch … NB If you pay for the goods in … Including VAT (Value Added Tax) rates for Spain, France, Belgium, South Korea, Japan, Pakistan, Singapore and more. These traps include: the assumption that VAT is similar to US sales tax or GST (it is not), and a belief that VAT does not apply to non-European businesses (it does). A Dutch business buying goods from another EU country will generally pay VAT on those goods in the Netherlands. Value Added Tax (VAT Rates) per Country. For example, if you: Whether you will be required to pay VAT relating to these services depends on the question whether you supply the service in the Netherlands. This means that a company which sold more than €100,000 in goods to the Netherlands during the previous financial year must apply the VAT rate of … The legal criteria are aimed to determine who is in fact the beneficial owner of the asset. If that is the case then usually you will be required to pay VAT in the Netherlands. The request can be filed once per quarter, once per half year or once per year. Javascript is disabled in this web browser. You have to pay VAT in the country where you register the car. When you are active in the e-commerce business, special VAT rules may be applicable. VAT stands for “ For instance the VAT relating to meals and drinks is in general not refundable. There is extensive policy about the qualification of leases and special rules can apply to certain specific situations. A number of transactions - mainly in the financial (banking/insurances) and real estate sector but also various medical services and certain types of education - are tax exempt. VAT relating to purchase and sale of goods, VAT is often reverse-charged to the person receiving the service, organise musical or theatrical performances. In essence, a lease can be treated as either a delivery of goods or a rendering of services. If you are active in one of these lines of business, in general you are not allowed to charge VAT on your invoices and in addition VAT you have paid on your invoices is not refundable. You must activate Javascript in order to view this website. A recent study found that German, French, and Dutch consumers favor a 0 percent VAT rate on fruits and vegetables. Every entrepreneur has to charge this BTW on its sales and remit it to the Dutch tax administration (Belastingdienst). Claiming refund of VAT Are goods bought by you or your enterprise in the Netherlands or are you involved with other costs? consumer tax). The VAT registration threshold for established Dutch businesses is €1,350 of VAT due in a complete year. It is possible that your company performs both taxable and exempt transactions. This means that in general every invoice issued by a business - irrespective at what step in the supply chain - should include VAT and every invoice a business receives includes VAT as well. export) are in general not subject to VAT. When you acquire goods from a supplier in another EU member state (a so-called intra-community acquisition) the goods will in general be subject to Dutch VAT (as the VAT is shifted from the supplier to the customer). Furthermore, your customer, being the recipient of an incorrect invoice, may experience difficulties reclaiming VAT on the incorrect invoices it received. If you are buying the car in one EU country and you intend to take and register it in another EU country, you need to inform the car dealer so you don't pay VAT there. There are many variations to the rates above, including exempt taxable supplies. The Dutch standard VAT rate is 21% and applies to most goods and services. We therefore recommend to get a clear picture of how you will structure your business in order to be allowed the maximum VAT relief. In order to apply this EU VAT-regime various conditions should be met (see also invoicing requirements below). These documents must show the amounts of VAT you have paid. The VAT is often reverse-charged to the person receiving the service. In that case, VAT may become a cost for your business. Various criteria must be met for the qualification of a lease as finance lease. A Nil return stating that no VAT is due or is refundable could be done for a minimum amount of € 150. 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