A VAT Refund Netherlands Guide

How to get VAT Refunds from A VAT Refund Netherlands Guide for your business

Exploring business opportunities in Netherlands? Read on to learn more about VAT in the Netherlands as well as their rules and regulations.
The below information details the requirements needed to be eligible for a VAT refund. This includes claimable expense types, Netherlands VAT rates, deadlines and claiming periods.
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Where is your company based?

EU

based businesses

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VAT-registered businesses in an EU member state are eligible to recover VAT on business costs from A VAT Refund Netherlands Guide under the EU VAT Refund Directive.

NON-EU

based businesses

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VAT-registered businesses outside of the European Union are eligible to recover VAT on business costs from A VAT Refund Netherlands Guide under the 13th Directive.

The Netherlands VAT Rates:

In 1969, the Netherlands became one of the earliest European countries to introduce a value-added tax (VAT). The Dutch VAT or value added tax (known locally as the BTW) started at a standard rate of 12% before increasing to 17.5% a few years—just above the minimum 15% rate for members of the European Union. Rates fluctuated around the 17.5% mark for close to 15 years.

Since the 1990s, the Dutch standard value added tax or VAT rate has risen by a few percentage points every decade or so, with brief declines during times of economic crisis. The most recent increase occurred in 2012. As of 2022, the Netherlands’ standard Dutch VAT rate of 21% still falls slightly above average compared to neighboring countries.

Current Rates in The Netherlands

The Netherlands uses a three-tier system of VAT rates: standard, reduced, and zero-rate. The details of each category are as follows:

  • Standard (21%) – The standard rate covers all goods and services that don’t fall under the other two categories. The vast majority of products fall at 21% Dutch tax rates.
  • Reduced (9%) – On January 1, 2019, the government increased the reduced VAT rate from 6% to 9%. Reduced goods and services include essential supplies like agricultural products, food and beverage, medicine, books, magazines, and newspapers. This rate also covers hairdressing, renovations and repairs, the use of sports facilities, and admission to cultural events.
  • Zero (0%) – Most zero-rated items have ties to international commerce. For example, international transportation via air or sea is VAT-free, as are exported goods.

How to Pay VAT Bill in The Netherlands

The Netherlands offers three payment schedules for foreign entities to complete their VAT returns:

  • Monthly – If you file monthly, your return will be due on the last day of the month, two months after a sale. For example, VAT from September will be expected by November 30.
  • Quarterly – Quarterly payments follow a similar “two months later” schedule. First-quarter returns are due by May 31; second-quarter returns are due by August 31; third-quarter returns are due by November 30; fourth-quarter returns are due by February 28. Quarterly returns are the most common.
  • Annually – If you submit your VAT returns annually, the due date is March 31 of the following year.

Conveniently, the Dutch Tax and Customs Administration will inform you which schedule you need to follow.

Since 2014, the Dutch Tax and Customs Administration has required all foreign businesses to submit their returns online. To fill out the form, you must first register with Mijn Belastingdienst Zakelijk and then log into your account, through which you can also make payments.

The Netherlands VAT Compliance

To comply with VAT rules and regulations in the Netherlands—and receive refunds when owed—one must:

  • Maintain complete and accurate records and accounts for seven years
  • Invoice customers for goods and services on time
  • Include all required information on every invoice, such as VAT number and invoice number
  • Use official currency conversion rates

For more information about how to receive a VAT refund, Netherlands VAT laws, and VAT compliance support, contact VAT IT today.

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Sources

Organisation for Economic Cooperation and Development. Consumption Tax Trends – Netherlands. https://www.oecd.org/tax/consumption/consumption-tax-trends-netherlands.pdf

Government of the Netherlands. VAT rates and exemptions. https://www.government.nl/topics/vat/vat-rates-and-exemptions 

 Tax and Customs Administration. Latest date for receipt of VAT [BTW] return and payment for entrepreneurs not based in the Netherlands. https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/business/vat/vat_in_the_netherlands/filing_vat_return_and_paying_vat/latest_date_for_receipt_of_vat_btw_return_and_payment_for_entrepreneurs_not_based_in_the_netherlands

Tax and Customs Administration. Invoice requirements. https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/business/vat/vat_in_the_netherlands/vat_administration/invoice_requirements 

Which countries have reciprocity with A VAT Refund Netherlands Guide?

All countries can claim

For a more detailed explanation on what reciprocity means within the scope of VAT, click here:

What expenses are claimable in A VAT Refund Netherlands Guide?

ENTERTAINMENT & HOSPITALITY

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Entertainment

0%
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Hotels & Accommodation

6%
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Restaurants

0%

EVENTS

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Conferences, Trade Shows & Exhibitions

21%
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Training Courses & Seminars

21%

GENERAL EXPENSES

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Goods

21%
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Inter-company charges

21%
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Office Expenses

21%
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Marketing Costs

21%
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Professional Fees & AP invoices

21%

TRAVEL RELATED

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Car Rental

21%
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Fuel

0%
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Public Transport

9%
| VAT IT | A VAT Refund Netherlands Guide

Taxis

9%

Additional Information

How far back can your business claim VAT from A VAT Refund Netherlands Guide?
5 years back from the previous year
What’s the foreign VAT deadline in A VAT Refund Netherlands Guide?
30 June of each year (Within 6 months of the end of the calendar year in which the tax was incurred)
How long does it take to receive a VAT refund from A VAT Refund Netherlands Guide?
Depending on the complexity of your application and the capacity at the VAT authority, it can take up to 6 months for EU businesses and up to 10 months for Non-EU businesses to receive a VAT refund from the Netherlands

Need help with your VAT refund from A VAT Refund Netherlands Guide?

You don’t have to do this alone. We’ve been helping companies reclaim foreign VAT refunds for over 20 years. We have the knowledge and technology to process your refunds quicker as well as attend to any unforeseen VAT authority queries that may arise.

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