VAT

If you work in the Netherlands, you sometimes have to deal with VAT, or value-added tax.  

What is VAT? 

If you work in the Netherlands, you sometimes have to deal with VAT. VAT stands for value-added tax. This is a tax you pay on products and services. 

Employee or entrepreneur? 

If you are an employee, you do not need to deal with VAT yourself. Your employer will take care of this. If you are an entrepreneur, you must charge VAT to your customers. You calculate the amount of VAT based on the price of your products or services. You pay this VAT to Belastingdienst. 

VAT rates in the Netherlands 

There are three VAT rates: 

• 21%: this is the standard rate. It applies to clothing and furniture, for example. 
• 9%: this rate applies to some products and services, such as food and drink. 
• 0%: this rate applies to specific goods and services provided to customers in other countries. 

Some products and services are exempt from VAT. This means you do not have to charge VAT and cannot deduct any VAT. 

Filing a VAT return 

If you are an entrepreneur, you must file a VAT return. This means you must declare how much VAT you have received from customers and how much VAT you have paid to other businesses. You usually do this once a quarter. You pay the difference to Belastingdienst. 

Small businesses scheme (KOR) 

If you earn less than €20,000 a year, you can opt for the small business scheme (KOR). This means you do not have to charge VAT and file a VAT return. It also means you are not allowed to deduct any VAT you have paid. 

Recordkeeping 

Keeping proper records is essential. Keep your invoices and receipts safe so you can show how much VAT you have received and paid. 

For more information, visit the Belastingdienst’s website and Rijksoverheid.nl.