VAT & Administration

Dutch VAT Rates Explained: 21%, 9% and 0% (BTW)

Updated: 2026-05-27 Holdwise editorial team VAT BTW Tax

The Netherlands has three VAT rates. VAT is called "BTW" in Dutch (belasting over de toegevoegde waarde). The rate that applies to your product or service is the rate you put on the invoice. At Holdwise, we updated this answer on 27 May 2026. You find the figures for each situation in the table on this page.

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, use 21% as the default. Most services that entrepreneurs provide fall under the standard rate, for example IT, design and advice.

The reduced rate: 9%

The government uses the 9% rate to keep essentials affordable. It applies to items such as groceries, books, medicine and some labour-intensive services. Since 1 January 2026, hotels and other accommodation fall under the 21% rate.

The 0% rate

A 0% rate is different from "VAT-free". With a 0% rate, VAT applies at zero, so you still report it in your return. The 0% rate mainly applies to exports to countries outside the EU and certain international services.

Selling to EU clients

When you sell to a business in another EU country, you usually pass the VAT to them under the reverse charge ("btw verlegd"). You charge 0% and put a note about the reverse charge on the invoice. This rule is different from the 0% export rate, although the percentage is 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.

Is your company established outside the EU? Then a Dutch fiscal representative files the VAT returns and applies for the Article 23 licence for you. See fiscal representation in the Netherlands for non-EU companies for how it works and how the costs are built up.

Every quarter and every year, a Dutch company keeps records and files returns. What does it cost to hand this work over? See bookkeeping in the Netherlands for owners abroad.

Free advice

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Part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

Which VAT rate should I use if I am unsure? +

Use the standard rate of 21%. It is the default for most goods and services. The 9% and 0% rates are specific exceptions. If you are still unsure, check with the Tax Authority or an accountant.

Did any VAT rates change in 2026? +

Yes. From 1 January 2026, the rate for hotel and accommodation services went up from the 9% reduced rate to the 21% standard rate.

Is 0% VAT the same as being exempt? +

They are different. With 0% VAT, the supply is still taxable, at zero, and you keep the right to reclaim the related input VAT. With an exemption, the invoice leaves VAT out, and you usually lose the right to reclaim the input VAT as well.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: 2026-05-27