VAT schemes and exemptions

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Netherlands Tax Administration, Belastingdienst
Netherlands Tax Administration, Belastingdienst

If you run a business in the Netherlands, sometimes special rules apply to the calculation of VAT (BTW). For example, in some cases you do not charge VAT on your turnover, but on your profit margin. You can read about these Dutch VAT rules here.

Margin scheme

Do you trade in used goods? If so, you may be able to apply the margin scheme. Then you do not calculate the VAT on your turnover, but on the profit. This is the difference between the selling price and the purchase price of goods.

The margin scheme applies to most common used goods that you have purchased without VAT. Such as second-hand clothing. Art, antiques, and collectibles are also sometimes covered by the scheme. However, there are then additional conditions.

Travel agency scheme

Do you sell trips or holidays? If so, in some cases you have to apply the travel agency scheme. You will then pay VAT on your profit margin on a trip instead of on the total price of the trip. But you are not allowed to deduct all VAT.

View examples of how to use the travel agency scheme on the Tax Administration's website.

VAT exemptions for specific industries and activities

Some business activities and industries are exempt from VAT. This means that you then do not charge VAT on your goods and services. For example, if you perform certain services as a self-employed professional without staff in healthcare. Or in education.

Find out which activities and sectors are exempt and what this means for you on the Tax Administration's website.

Small businesses scheme (KOR)

The small businesses scheme (KOR) is a VAT exemption for small businesses. You can make use of the KOR if your business has a turnover of €20,000 or less. You will then not charge VAT to your customers. And you do not have to pay VAT to the Tax Administration. But you cannot deduct VAT on business expenses and investments either. You no longer have to file a VAT return. There are a few exceptions to this. Read more in the article Small businesses scheme.

Questions relating to this article?

Please contact the Netherlands Tax Administration, Belastingdienst