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, some small repairs (bicycles, shoes and clothing) and several other categories. The 0% rate applies to exports outside the EU and to supplies to VAT-registered businesses in other EU countries. For supplies to those businesses, 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.
For sales to consumers in other EU countries, the company can use the EU VAT return for cross-border sales (OSS). It then files one quarterly return for all EU consumer sales. For imports through the Netherlands, the company can use an Article 23 licence. With this licence, the company declares the import VAT in its VAT return. The company keeps its cash at the moment of import.
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
Every rate for 2026 is listed in Netherlands tax rates 2026, and the figures for 2027 are in Netherlands tax rates 2027.
Questions people ask
How often is the VAT return filed?
Most companies file every quarter. Companies with large amounts or refunds file every month. Very small companies file once a year. 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. We handle those questions as part of the incorporation.
Holdwise, Hoofddorp. We keep this definition in line with our Dutch and German glossaries, and the figures are those for the tax year 2026. Updated 30 September 2026.
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