Zero-rated versus exempt
This is where most mistakes happen, so it comes first. Under the zero rate you charge no VAT but you may still deduct the VAT you paid on your own purchases — input VAT. Under an exemption you also charge nothing, but that deduction disappears. Healthcare, education, financial services and residential letting are exempt. The zero rate is favourable; the exemption is a different regime altogether.
The 2027 rates
| Rate | Applies to | 2027 |
|---|---|---|
| 21% | Standard: services and general goods; hotel accommodation since 2026 | Unchanged expected |
| 9% | Food, books, medicines, selected culture and sport | Unchanged expected |
| 0% | Exports outside the EU and B2B supplies within the EU, with evidence | Unchanged expected |
| Exempt | Healthcare, education, financial services, residential letting | Unchanged expected |
The last significant shift landed on 1 January 2026, when hotel accommodation moved from 9% to 21%; campsites stayed at 9%. Nothing further is announced for 2027, and Budget Day, Tuesday 15 September 2026, gives the definitive picture.
Worked example: one quarter
You invoice €40,000 to Dutch business customers at 21%, collecting €8,400. In the same quarter you purchase €12,000 with €2,520 of input VAT. You remit €8,400 minus €2,520 = €5,880. Add a €15,000 supply to a German business with a valid VAT number: 0% on the invoice with the reverse-charge note, and that €2,520 input VAT remains fully deductible.
Selling to EU consumers
Up to €10,000 of cross-border sales per year you apply the Dutch rate; above it, the rate of your customer's country, all filed in a single Dutch return through the One Stop Shop (OSS). See OSS VAT for EU e-commerce and Dutch invoice requirements.