Standard VAT Rate
21%
Digital Reporting Requirements / E-invoicing
Yes
Sales Tax on Cross-Border Electronically Supplied Services
Yes
Tax Authority Website
Tax and Customs Administration (Belastingdienst)
The standard Value Added Tax (”Belasting over de toegevoegde waarde” (BTW)) rate in The Netherlands is 21%, with some services exempt from Dutch VAT, such as financial services or the supply of immovable property.
The following Dutch territories are excluded from the scope of Dutch VAT:
The Netherlands has a small business scheme under which Netherlands-based businesses whose turnover does not exceed EUR 25,000 in a year are exempted from issuing invoices and filing VAT returns.
Individuals: Burgerservicenummer (BSN)
Businesses: Omzetbelastingnummer (Ob-nummer) and Btw-identificatienummer (Btw-id)
Digital Services in the European Union (EU) are often referred to as electronically supplied services (ESS). The Netherlands applies the harmonized EU VAT rules for ESS.
Under the EU’s B2C ESS rules, until the sales value reaches EUR 10,000 (including distance sales of goods), the seller can charge VAT where it is resident. Once the sales exceed the threshold, the seller should register for VAT in The Netherlands, or it can choose to account for the VAT under the EU’s One Stop Shop (OSS) regime.
VAT Rate: 21% VAT is typically applied to the sale of affected electronically supplied services
Learn More About VAT on Digital Services in the Netherlands
The Netherlands applies the harmonized European Union’s (EU) VAT rules for marketplace & platform operators.
Supply of goods
A marketplace is deemed to have received and supplied the goods themselves. This transaction is split into two supplies:
This rule covers the following:
Supply of services
When electronically supplied services are sold through an intermediary, e.g. a marketplace for applications, the intermediary is deemed to have received and supplied the services themselves. Therefore, the VAT liability shifts to the intermediary from the underlying supplier.
The following invoice content should be required in the Netherlands:
A simplified invoice should contain the following:
Business-to-government (B2G) e-invoicing has been mandatory in The Netherlands since 2017. Businesses contracting with the central government should issue e-invoices.
Local authorities may also require suppliers to issue e-invoices.
Learn more about E-Invoicing and Digital Reporting in the Netherlands
The Ministry of the Interior and Kingdom Relations (”Ministerie van Binnenlandse Zaken en Koninkrijksrelaties” (BZK)) is responsible for e-invoicing in The Netherlands.
The Netherlands does not provide simplified VAT returns for VAT-registered non-resident taxpayers supplying qualifying electronically supplied services. Instead, they can avoid VAT registration in The Netherlands and use the EU One-Stop Shop (OSS) return.
In the case of the late filing of VAT returns and payments, the Tax and Customs Authority enforces the following penalties:
Late payment:
Late filing:
Fonoa does not provide professional tax opinions or tax management advice specific to the facts and circumstances of your business and that your use of the Specification, Site, and In addition, due to rapidly changing tax rates and regulations that require interpretation by your qualified tax professionals, you bear full responsibility to determine the applicability of the output generated by the Specification and Services and to confirm its accuracy. No professional tax opinion and advice. Fonoa does not provide professional tax opinions or tax management advice specific to the facts and circumstances of your business and that your use of the Specification, Site, and In addition, due to rapidly changing tax rates and regulations that require interpretation by your qualified tax professionals, you bear full responsibility to determine the applicability of the output generated by the Specification and Services and to confirm its accuracy.