VAT rates and exemptions
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The Dutch VAT regime (btw, omzetbelasting) has three rates: 0%, 9% and 21%. If you do business in other countries from your base in the Netherlands, the 0% VAT rate may apply. The lower VAT rate of 9% applies to a number of products and services, such as food products, medicines, books, newspapers and magazines and paint and plaster work on homes. For other products and services you will pay the general VAT rate of 21%.
The VAT rate on e-books and other electronic publications has changed to the lower VAT rate of 9%. This applies to the sale or lending of digital books or online publications, such as newspapers and magazines which are published at least 3 times a year. This measure is in force since 1 January 2020.
Exemption from VAT
Businesses in certain sectors and businesses that perform certain activities are exempt from VAT. This means that their customers are not charged VAT. The following activities are some of those exempt from charging VAT, see the Dutch Tax and Customs Administration website for a full list of tax exemptions (in Dutch):
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If you sell goods to non-EU residents, you need not charge any VAT (tax-free shopping). A condition is that the goods leave the EU. You can use a copy of the sales invoice or a cheque stating the buyer's name to demonstrate this. You can also make a copy of the customer's passport. In that case, however, you must cover the passport photo and the citizen service number (BSN).
Medical consultations which focus on healthcare for individuals are exempted from VAT. This applies to doctors, paramedics, psychologists, dentists and care homes, for example. The exemption applies to professions that fall under the Individual Health Care Professions Act (Wet op de Beroepen in de Individuele Gezondheidszorg, BIG) and is only applicable to services in the area of expertise of these professions. However, if you operate a temporary work agency that provides health care professionals to their clients, you do have to charge VAT (21%). That also applies to personnel that is registered in the BIG register.
If you supply telecommunications, broadcasting and e-services, the place of supply determines where VAT may be charged and paid. If your customer is a business that is not established in the Netherlands, but within the EU, they will be charged and pay VAT in their own country. However, if your EU customer is a consumer, it is you who will be charged VAT according to their country's regulations. Finally, if your customer belongs to a non-EU country, you do not pay EU VAT at all.
The VAT rate for performing arts and art and collectors' items has increased to 9%. Services which are invoiced in 2018 can charge the old 6% rate, even if the work is carried out in 2019. For instance ticket sales in 2018 for a performance in 2019 need only charge 6% VAT.
The VAT rate for the leasing of berths for houseboats is 0% (in Dutch).
Watersports clubs are exempt from paying VAT over moorings for rowing, sailing and powerboats (in Dutch). However, VAT is due on moorings for recreational motorboats.
Do you run a private school or do you work as an independent teacher? Do you provide vocational training and are you registered in the Central Register of Short Professional Training Courses (Centraal Register Kort Beroepsonderwijs, CRKBO)? Than you may use the VAT exemption for vocational schools.
Fund-raising activities are exempt from VAT for care organisations, youth organisations, sports organisations, educational organisations, collective interest organisations (such as charities, religious organisations and employee organisations) and social and cultural institutions. There is a limit to the amount these organisations can raise.
At present non-profit-making sports organisations and clubs which provide services to members are exempt from VAT. In 2019 this exemption has been extended to non-members of sports clubs as well as members. This means the rental of sports accommodation and provision of sports services will benefit from the measure.
Farmers, market gardeners, foresters and livestock breeders in the Netherlands are no longer eligible (in Dutch) for a special VAT exemption for goods and services under the agriculture scheme (landbouwregeling) and the livestock trading scheme (veehandelsregeling).
Special VAT arrangements
There are also a number of special VAT arrangements (in Dutch), including:
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If you deal in second-hand goods and are eligible for this arrangement, you only have to pay VAT on the difference between the sale price and the purchase price.
If your services are eligible for the travel agency arrangement, you pay VAT on the profit margin for travel services, instead of on the total price.
Under the reverse-charge arrangement, you do not charge VAT, but reverse-charge it to your buyer.