How it works
Almost every business in the Netherlands charges VAT on what it sells and files a VAT return, usually every quarter. On the return the business reports the VAT it charged, deducts the VAT it paid on purchases and pays the difference. A business that paid more than it charged gets a refund.
The standard rate is 21%. The reduced rate of 9% applies to food, medicines, books, repairs and several other categories. The 0% rate applies to exports outside the EU and to supplies to VAT-registered businesses in other EU countries, where the customer accounts for the VAT (reverse charge).
A BV receives its VAT identification number (btw-id) from the tax authority after the KVK registration. For a company owned from abroad the number is granted after a short check of the activities and the address.
Selling to consumers in other EU countries goes through the One Stop Shop: one quarterly return for all EU consumer sales. Importing goods through the Netherlands works with the Article 23 licence, which puts the import VAT on the VAT return, so the company keeps its cash at the border.
Example
A BV sells consulting for €10,000 to a Dutch customer and charges €2,100 VAT. It bought a laptop for €2,000 plus €420 VAT. On the quarterly return it pays €2,100 minus €420, which is €1,680. To a German business customer it invoices the same service at 0% with the note “VAT reverse charged”.
The figures
All 2026 figures: Netherlands tax rates 2026 · the 2027 figures: Netherlands tax rates 2027.
Questions people ask
How often is the VAT return filed?
Quarterly for most companies; monthly for large amounts or refunds; yearly for very small ones. The return and the payment are due one month after the end of the period.
Does a foreign-owned BV get a VAT number automatically?
The tax authority issues it after registration, sometimes after questions about the activities, the address and the director. Holdwise handles those questions as part of the incorporation.
Holdwise, Hoofddorp. Definition and explanation maintained with the Dutch and German glossaries; figures from the central rates source, year 2026. Updated 16 September 2026.
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