The Netherlands Increases the VAT Registration Threshold and Extends Applicability Until the End of 2024

January 6, 2023

Summary 

The Netherlands obtains permission to extend the deadline for applicability of the special measure for the VAT registration threshold exemption for taxable persons whose annual turnover is less than EUR 25,000. 

Timeline

The measure is extended until the end of 2024. 

Impact

Following the issuance of the Council Implementing Decision (EU) 2022/2542, the Netherlands was authorized to introduce a special measure derogating from Article 285 of VAT Directive. This measure exempts taxable persons from VAT until the end of 2024, as long as their annual turnover isn’t above EUR 25,000. The previous Decision (EU) 2018/1904 was set to expire at the end of 2022. 

The Netherlands has officially submitted a proposal to the European Commission to extend the previously set period for the usage of the particular measure, which will now stay in effect until December 31, 2024. 

The Council has approved the proposal from the European Commission, amending Implementing Decision (EU) 2018/1904, authorizing the Netherlands to extend the applicability of the special measure, by which the taxable persons whose annual turnover is not higher than EUR 25,000 don’t have an obligation to register for VAT. 

This special measure and related VAT threshold apply only to resident businesses, not foreign taxable persons. 

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Aleksandar Delić
Tax Researcher

Aleksandar is a Tax Research Analyst at Fonoa, and previously worked as a Business Analyst in New Black BV’s Compliance department. Based in Novi Sad in the Republic of Serbia, Aleksander joined Fonoa for the opportunity to work with a team of highly skilled TaxTech experts and make a real impact on the industry. Fun fact: If he could open any kind of business, it would be a pizzeria that serves delicious pies using only the freshest ingredients imported directly from Italy. Mangia!