The Dutch VAT regime (btw, omzetbelasting) has 3 rates : 0%, 9% and 21%. In some instances businesses are exempt from VAT and in some cases there are special arrangements regarding VAT.
VAT rates
0% rate
If you are based in the Netherlands and you do business in other countries, the 0% VAT rate may apply. The 0% rate also applies to services related to cross-border transactions. For instance to services for the international carriage of goods. Or work on goods, such as repairs, that are exported to non-EU countries. The 0% rate applies to the international air or water transport of passengers as well.
9% rate
The 9% rate, or low tariff, applies to a number of products and services, such as food products, medicines, books (also e-books), newspapers, magazines, online publications, and paint and plaster work on homes.
21 % rate
The 21 % rate is also called the general tariff. This is the most common rate. The 21 % applies to all other products and services, unless there is a reason for exemption or reverse charging VAT.
View the extensive Dutch-language list of goods and services for which the different tariffs apply.
Exemption from VAT
Businesses in certain sectors and businesses that perform certain activities are exempt from VAT. This means that their customers pay no VAT. The following activities are some of those exempt from charging VAT:
If you supply telecommunications, broadcasting and e-services, the place of supply determines where VAT will be charged and paid.
- If your customer is a business that is not established in the Netherlands, but within the EU: your customer will be charged and pay VAT in their own country.
- If your customer belongs to a non-EU country: you do not pay EU VAT at all.
- If your customer is a business that is not established in the Netherlands, but within the EU: your customer will be charged and pay VAT in their own country.
- If your customer belongs to a non-EU country: you do not pay EU VAT at all.
If your EU customer is a consumer: you will be charged VAT according to your customer’s country's regulations (in Dutch).
Is your company (only) established in the Netherlands? And do you expect your turnover from another EU member state on digital services and distance sales will be less than €10,000 per year? You can choose 1 of 2 options:
- Option 1: you calculate the Dutch VAT and pay it in the Netherlands. Do you exceed the €10,000 threshold? From then on, you should calculate the VAT that applies in your customer’s (EU) country.
- Option 2: you can choose to not use the €10,000 threshold. In that case all your distance sales and digital services will be taxed in your customer’s EU country. You can specify this in the Dutch-language form Melding keuze plaats van prestatie digitale diensten en afstandsverkopen (Notification choice of provision of digital services and distance sales).
To make sure you will not have to register with tax administrations in all countries you supply to, you can use the One Stop Shop (OSS). With the OSS you can comply with all your VAT notifications and payments on your supplies in all EU countries in one go. You can use the OSS for services you supply to consumers within the EU as well. You can also consult the Dutch Tax and Customs Adminstration's website (in Dutch) for more information.
See the website of the Dutch Tax and Customs Administration (Belastingdienst) for a full list of tax exemptions (in Dutch).
Tax-free shopping
Do you sell goods to non-EU residents who want to shop tax-free (in Dutch)? First of all, you need to establish that they live outside the EU by checking their passport or ID. Making a copy of the customer's passport is allowed only when you cover the passport photo and the citizen service number (BSN). Another condition is that the goods leave the EU. You do charge the VAT, but you can return it to your customer later on. You supply your customer with an invoice (on which you state the customer’s ID number) that they need to have signed for export by customs. After that they send the invoice back to you and you can refund them the VAT.
Special VAT arrangements
There are also a number of special VAT arrangements (in Dutch), including: