AI & Software

VAT on SaaS in the EU: one OSS return from the Netherlands

Updated: 6 October 2026 Holdwise editorial team VAT OSS SaaS

VAT is the first tax a SaaS founder deals with, so set it up correctly from the start. The EU has 27 VAT systems. From the Netherlands, you declare the VAT on consumer sales to the other 26 EU countries in one return, in addition to your normal Dutch VAT return.

Short answer

Subscriptions sold to EU consumers are taxed at the value-added tax (VAT) rate of the customer's country. Above €10,000 of yearly cross-border EU consumer sales, each local rate applies. You declare these amounts from your Dutch base in one quarterly EU VAT return for cross-border sales (OSS). This one return replaces VAT registrations in the other 26 EU countries. Sales to Dutch consumers go in your normal Dutch VAT return. EU business customers are invoiced under the reverse charge. Customers outside the EU generally fall outside EU VAT.

At Holdwise, we keep this answer up to date and change it when the rules change.

Where digital services are taxed

Digital services to consumers are taxed where the consumer lives. A German user pays German VAT on your plan, and a French user pays French VAT. Below €10,000 of total cross-border EU consumer sales per year, you may still charge Dutch VAT (21%) on everything. Above that threshold, you switch to each country's rate, which for an international SaaS usually applies from the start.

One return for the other 26 EU countries

With the OSS return, you register once in the Netherlands for your consumer sales to the other 26 EU countries. You file one quarterly return with your sales per country, and the Dutch tax authority passes the money on to each country. For each customer, you keep two items of evidence of their country that agree with each other. Your payment provider collects these. You also issue correct credit notes for refunds, so the VAT on each refund is corrected in your return.

Business customers and the rest of the world

EU businesses with a valid VAT number get an invoice marked VAT-free, reverse charged, with their number shown on it. Sales outside the EU generally fall outside EU VAT. Large markets have their own rules for digital services, so check them once your revenue there increases. If you sell through app stores, the model is different. The platform is usually the seller and handles the consumer VAT, and you invoice the platform.

Pricing and the monthly habit

Set your prices including VAT and let your checkout software apply the rate per country. Otherwise your margin can vary by up to twenty percent between countries. Compare payment-provider reports with the bank every month. With this monthly check, you only need to add up the figures for the OSS return. For the company setup, see micro-SaaS in a Dutch BV (besloten vennootschap, the Dutch private limited company).

A company outside the EU can use these rules through a Dutch partner. See fiscal representation for non-EU importers for what that partner does and how the costs are built up. There you also read when your own Dutch company is the better option.

The VAT return is due every quarter, the payroll every month and the annual accounts once a year. Read more about this work, and how the monthly amount is calculated, on bookkeeping in the Netherlands.

Frequently asked questions

Is the €10,000 threshold per country? +

It is one threshold for all your cross-border EU consumer sales together. An international SaaS usually passes it almost immediately.

A customer says it is a business, but the VAT number is missing. What do I do? +

Treat the customer as a consumer and charge local VAT. If the customer gives a valid number later, you can correct the invoice and apply the reverse charge from that point.

Do US or UK sales appear in the OSS return? +

The OSS return is for EU consumer sales only. Revenue from outside the EU falls outside EU VAT, but local rules in those markets may apply.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: 6 October 2026