VAT in The Netherlands

The Netherlands is a member of the European Union (EU) and draws up its tax rules according to the laws or directives issued from Brussels by the EU. The current VAT directive applies to all 27 member states of the European Union, and it governs the rules on VAT compliance, and in some part, covers the setting of VAT rates.

As an EU member state, the Netherlands is obliged to implement the VAT directives, which provides guidance on VAT. Where there is a conflict, the European Union’s directive takes precedence. The Netherlands is a member of the European single market economy and uses the Euro (€) for its currency. In the Netherlands, VAT is known as: Belasting over de Toegevoegde Waarde, or BTW.

VAT registration in the Netherlands

Both EU and non-EU businesses may trade in The Netherlands without establishing a local presence. This is known as non-resident VAT trading. There is no VAT threshold in the Netherlands for the registration of non-resident traders, but you will need one to record transactions and your Dutch customers will want proof that you have obtained one.

There are strict rules on the situations where VAT registration is permitted. Common scenarios that require Dutch VAT registration include:

• Importing goods into the Netherlands;
• Organising live events, conferences, etc. in the Netherlands;
• Holding goods in a warehouse in the Netherlands as stock for resale;
• Buying goods within the Netherlands that are subsequently re-sold in-country;
• Selling goods from the Netherlands to other EU member states;
• Distance-selling to private individuals in the Netherlands, e.g. internet retailing or trading through an e-commerce platform.

Registering for Dutch VAT genrrally takes two weeks once all documentation has been submitted to the tax authority, but this varies from seller to seller and will depend on the specifics of an individual company.

Dutch VAT compliance

There are detailed rules controlling the recording and processing of Dutch transactions for VAT purposes. This includes guidelines on:

• Dutch invoice requirements;
• When to issue a Dutch tax invoice;
• Foreign currency reporting;
• Credit notes and corrections;
• Correcting entries from prior returns;
• Which accounting records must be maintained.

Tasas de IVA en los Países Bajos