Netherlands

When to register for VAT in Netherlands

In the Netherlands you need to register for VAT if:

• You store goods In the Netherlands
• You sell them to consumers based in France; and
• Your sales exceed Netherlands domestic VAT threshold

You may also need to register for VAT separately in other EU countries if:

• You sell goods to consumers in other EU countries.

Based in a different EU Country

You need to register for VAT in Netherlands if:

• You store your goods in the Netherlands or
• You sell to Dutch-based consumers (non-business); and
• Your sales exceed the Dutch distance selling VAT threshold of €100,000

Based Outside the EU

You need to register for VAT in Netherlands if:

• You sell goods that you store in Netherlands to customers based in the EU.
• You store goods in another EU country and surpass the distance selling thresholds to the Netherlands

You may also need to register for VAT separately in other EU countries if:

• You sell goods to consumers in other EU countries and surpass the distance selling thresholds.
• You store goods in other EU countries

Types of Dutch VAT

Registering for Netherlands VAT

If a company is not established in the Netherlands and is providing ‘taxable supplies’ of goods or services in the Netherlands, it may have to obtain a non-resident VAT Number. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in the Netherlands register before commencing taxable transactions if applicable.

You will need to register for VAT in the Netherlands if you meet any of the following criteria;

What are the Netherlands VAT thresholds?

• For foreign businesses trading in France that are VAT/GST/Tax registered in their home state, the VAT registration threshold is nil.
• For EU-VAT registered businesses the distance selling threshold is €100,000

Netherlands VAT Reporting

In the Netherlands all VAT registered businesses will initially start with Quarterly filings unless they meet other criteria.  Monthly returns are required if a business usually has to pay more than €15,000 in VAT per quarter. In addition other situations monthly returns may be required if a business is often late with VAT payments. Resident businesses which are liable for less than €1,883 a year and have an intra-Community supply and acquisition value of less than €10,000 are required to file annually.

Fiscal Representation

As a foreign entrepreneur you can appoint a tax representative to handle your business with the Tax and Customs Administration if you wish. If you do engage with a tax representative then you will not usually be obliged to register yourself as taxpayer for the VAT with the Tax and Customs Administration. Customs forwarding agents, who take care of import and export formalities for entrepreneurs, often act as tax representatives as well via limited fiscal licenses or article 23 licenses. The tax representative can complete VAT returns, EC Sales and reverse-charge mechanism on import.

It is mandatory to appoint a Fiscal Representative when using the reverse-charge mechanism in Netherlands for the purpose of import.

Netherlands VAT Rates

• 21% Standard – All other taxable goods and services
• 9% Reduced – Foodstuffs (excluding foodstuffs for animal consumption); some soft drinks; water supplies; certain pharmaceutical products; certain medical equipment for disabled persons; domestic passenger transport (excluding air travel); intra-community and international road, rail and inland waterway passenger transport; books (including e-books); newspapers and periodicals; admission to cultural events and amusement parks; writers and composers; certain renovation and repair of private dwellings; certain cleaning of private households; hotel accommodation; restaurants (excluding alcoholic beverages); take away food; bars, cafes and night clubs; admission to sports events; use of sports facilities; minor repairs of bicycles; shoes and leather goods; clothing and household linen; hairdressing; cut flowers and plants for decorative use (some exclusions) and food production; some works of art, collectors items and antiques
• 0% Zero – Taxation of gold coins; intra-community and international passenger transport by air and sea