VAT in the Netherlands (BTW) – how it works, who needs to register, and what are the rates 💶📊VAT w Holandii (BTW) – jak działa, kto musi się zarejestrować i jakie są stawki 💶📊
Are you running a business in the Netherlands or planning to start one? If so, you’ll certainly encounter the term BTW (Belasting Toegevoegde Waarde) – the Dutch tax on goods and services (equivalent to Polish VAT).
In this article, we explain step by step:W tym artykule wyjaśniamy krok po kroku:
- What BTW is
- Who must register
- What the tax rates areJakie są stawki podatku
- When to file a declaration
- And what exemptions and reliefs you can apply
What is BTW (VAT) in the Netherlands? 🤔Czym jest BTW (VAT) w Holandii? 🤔
BTW or Belasting Toegevoegde Waarde, is value-added tax collected on the sale of goods and services. Every entrepreneur registered in the Netherlands as a VAT taxpayer has an obligation to:
- Add BTW to their invoices
- File periodic declarations
- And remit this tax to the Belastingdienst office
VAT identification number (BTW-nummer and omzetbelastingnummer) 🔢
Every entrepreneur registered as a VAT taxpayer in the Netherlands receives two numbers:
- BTW-identificatienummer (BTW-id) – used in contacts with customers and on invoices
- Omzetbelastingnummer – used in correspondence and settlements with Belastingdienst
Example:
- Number BTW: NL001234567B01
- Number omzetbelasting: 123456789B01
Remember that you must include the BTW number on every invoice and on your company’s website.
Who must register for BTW? 📝✅
Every person running a business (including sole proprietorship ZZP) in the Netherlands who provides services or sells goods on the market is, in principle, a BTW taxpayer.
If you run a small business, you can benefit from a special relief – the so-called Kleineondernemersregeling (KOR). It allows you not to collect and remit BTW if your annual turnover does not exceed €20,000.Jeśli prowadzisz małą działalność, możesz skorzystać ze specjalnej ulgi – tzw. Kleineondernemersregeling (KOR). Pozwala ona nie pobierać i nie odprowadzać BTW, jeśli Twój roczny obrót nie przekracza 20 000 euro.
Benefits of KOR:
- No obligation to file BTW declarations
- No obligation to add tax to invoices
- Less administration
📞 Need help with BTW registration or VAT settlements?
Our team of accountants in Rotterdam specializes in serving companies in the Netherlands. We’ll help you with VAT registration, declarations, and tax optimization. Schedule a free consultation!
VAT rates in the Netherlands 💰📈
In the Netherlands, there are three main BTW rates:
| Rate | Description | Examples |
|---|---|---|
| 21% | Standard rate | Most goods and services (clothing, electronics, consulting services, transport, etc.) |
| 9% | Reduced rate, | Food products, books, hairdressers, doctors, passenger transport |
| 0% | Zero rate export | Export of goods, international services, deliveries outside the EU |
Services and goods subject to 9% BTW:
- Food products, drinking water, medicines
- Hairdressing and cosmetic services
- Passenger transport
- Books, newspapers, magazines
- Bicycle and clothing repairs
Services and goods subject to 0% BTW:
- Export of goods outside the European Union
- International transport of goods
- Deliveries to free trade zones
- Sales of goods to other EU countries (so-called intra-community supplies)
VAT exemptions (vrijstellingen)
Some activities are fully exempt from BTW tax. This means you don’t add tax to invoices and cannot deduct VAT from purchases.
Most common exemptions:
- Healthcare and social care
- Education and training
- Financial and insurance services
- Rental of residential properties
- Charitable and social organizations
VAT declaration (BTW-aangifte)
Every entrepreneur registered for BTW must regularly file a tax declaration (BTW-aangifte).
Key rules:
- Most commonly quarterly (some companies – monthly)
- Declarations are filed online in “Mijn Belastingdienst Zakelijk”
- Payment must be settled by the last day of the month following the end of the quarter
Example:
Declaration for Q1 (January–March) → file and pay by April 30.
In the declaration, you report:
- BTW due on salesNależny BTW od sprzedaży
- VAT deductions on purchases
- And the difference to be paid or refunded
Important tips for Polish entrepreneurs in the Netherlands 🇵🇱🇳🇱
- If you sell goods or services in the Netherlands – you must issue invoices with Dutch BTW
- If you operate internationally (e.g., Poland–Netherlands), remember the 0% VAT rules for intra-EU transactions
- For online sales – check the OSS (One Stop Shop) regulations, which simplify settlements between EU countries
- If your turnover does not exceed €20,000, consider using the KOR relief
- Remember to keep all invoices and payment confirmations for at least 7 years – the office may conduct an audit
Summary 📊
BTW tax in the Netherlands is an obligation for every entrepreneur, but thanks to simple rules and an online system, its handling is transparent and intuitive. Knowledge of rates, reliefs, and deadlines will help you run your business stress-free and avoid mistakes when settling with Belastingdienst.
If you’re not sure whether you need to register or how to properly settle VAT – consult with an accountant specializing in Dutch law.