Country Guide: The Netherlands


Looking to expand your e-commerce business to the Netherlands, then look no further, here is AVASK's guide to VAT in the Netherlands:

Image
Country Profile: The Netherlands

Dutch E-commerce facts:

Population17.1 million
(January 2020)
Currency:Euro (€)
Number of e-commerce users:14.5 million
(January 2020)
Revenue in e-commerce market:£12.38 billion
Estimated market growth:5.6% to £15.05 billion by 2024

Dutch thresholds and additional summary:

Distance Selling Threshold (DST)€100,000
Intrastat Thresholds:

Dispatches: €800,000

Arrivals:  €1 million

VAT number format:NL 123456789B01
NL 123456789B02
VAT return period:
(Dependent on turnover)
Usually quarterly, monthly or annually considered 
VAT return deadlineLast day of the month following period end
Annual VAT filing deadline:Not required
EC sales lists reportingMonthly or quarterly

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.

Dutch VAT rates

VAT Rate% Rate
Standard Rate21%
Reduced Rate9%
Zero Rate0%

Need help expanding to the Netherlands?

Contact AVASK's International Business Development Team Today!

Image
Tom Meek

International Business Development Manager

Location: Southampton, UK
Tel: +44 (0)23 8060 0120


Book an Appointment
Image
Christine Lawless

International Business Development Officer

Location: Southampton, UK
Tel: +44 (0)23 8060 0120


Book an Appointment
Image
Habib Bouzidi

International Business Development Officer

Location: Southampton, UK
Tel: +44 (0)23 8060 0120


Book an Appointment