The three Dutch VAT rates
| Rate | Applies to (examples) |
|---|---|
| 21% (standard) | Most goods and services: consultancy, electronics, clothing |
| 9% (reduced) | Food, books, medicines, hairdressers, public transport |
| 0% | Exports outside the EU and certain cross-border services |
The standard rate: 21%
If you are unsure, the default is 21%. Most services that entrepreneurs provide, from IT to design to advice, fall under the standard rate.
The reduced rate: 9%
The 9% rate is a deliberate choice by the government to keep essentials affordable. It covers items like groceries, books, medicine, and some labour-intensive services. Note that the hotel and accommodation sector moved to 21% from 1 January 2026.
The 0% rate
Keep 0% and "VAT-free" apart. A 0% rate means VAT applies but at zero, so you still report it. It mainly covers exports to outside the EU and certain international services.
What about EU clients?
When you sell to a business in another EU country, you usually shift the VAT to them under the reverse charge ("btw verlegd"), charging 0% and noting it on the invoice. This is different from the 0% rate for exports, even though the number looks the same.
Reclaiming VAT you pay
As a VAT-registered entrepreneur, you can usually reclaim the VAT you pay on business purchases ("voorbelasting"). You offset it against the VAT you collect, and pay the difference to the Tax Authority.
Where this leads
Further along the same line: The Dutch Small Business Scheme (KOR) Explained, Keeping Receipts and The DGA Payslip Explained.