VAT rates and exemptions
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The Dutch VAT regime (BTW, omzetbelasting) includes three rates: 0%, 6% and 21%. If you do business in other countries from your base in the Netherlands, the 0% VAT rate may apply. The reduced VAT rate of 6% applies to a number of products and services, such as food products, medicines and paint and plaster work on homes. For other products and services you will pay the general VAT rate of 21%.
VAT rate to increase
Under the new budget, the 6% VAT rate is due to be increased to 9% as of 1 January 2019. This measure was announced on Prinsjesdag 2018 (Budget Day) and is, of course, subject to it passing through the Upper and Lower Houses of Parliament, as is the date of introduction.
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.