This essentially means that overseas retailers sending goods to the UK are expected to register for UK VAT and account for it to HMRC if the sale value is less than €150 (£135). Then your suppliers will charge you VAT. As a reference for native English speakers, BTW is the Dutch acronym for VAT. There are many variations to the rates above, including exempt taxable supplies. Not all VAT is refundable. The Dutch VAT regime ( btw, omzetbelasting) has 3 rates : 0%, 9% and 21%. From €1,350 to €1,883 there is a simplification gradually increasing VAT obligations, but where the VAT due exceeds € If that is the case then usually you will be required to pay VAT in the Netherlands. However, if your enterprise is established outside the Netherlands, you are subject to Value Added Tax (VAT) regulations, also known as “turnover tax,” if you import goods into the Netherlands. The request can be filed once per quarter, once per half year or once per year. If a VAT return is not filed within the deadline, or VAT due is not paid within one month after the end of the VAT period, a fine will be due. A recent study found that German, French, and Dutch consumers favor a 0 percent VAT rate on fruits and vegetables. In brief the system for imports and exports and intra-community supplies works as follows. Foreign entrepreneurs who have no taxable presence for VAT purposes in the Netherlands are eligible for a refund of the Dutch VAT they have incurred. Invoicing requirements are incorporated in Dutch tax law which are based on an EU directive. From the VAT you charged on your sales (output VAT) you should deduct the VAT that has been charged to you by other businesses (input VAT). Javascript is disabled in this web browser. With regard to the import of certain goods import duting may also become due. VAT as incorporated in Dutch tax law is based on EU Directives. You supply a service if you are paid for a service that is not the supply of goods. Find more Dutch words at wordhippo.com! These documents must show the amounts of VAT you have paid. The Dutch rate is average in comparison to other EU member states (see under the rate in other EU - member states). Therefore you only pay the Dutch VAT if you supply a service in the Netherlands and if … It is furthermore noted that records are to be kept of copies of invoices for a period of at least seven years. In order to apply this EU VAT-regime various conditions should be met (see also invoicing requirements below). For example, if you: Whether you will be required to pay VAT relating to these services depends on the question whether you supply the service in the Netherlands. NB If you pay for the goods in … Supplies of goods to customers outside the EU (i.e. It is administered by the Dutch Revenue, and is based on the original Dutch VAT law with subsequent administrative decisions and rulings. In essence, a lease can be treated as either a delivery of goods or a rendering of services. There is extensive policy about the qualification of leases and special rules can apply to certain specific situations. A 21% Dutch BTW rate, also called the high or general tariff, applies to all other VAT taxable activities; Some goods or services are exempt from BTW (0%), such as international activities. Get in touch with us today. In such case it is only allowed to deduct input VAT to the extent that it relates to taxable transactions (pro-rata calculation). Dutch VAT rates are based on the European Union's VAT Directive. When you acquire goods from a supplier in another EU member state (a so-called intra-community acquisition) the goods will in general be subject to Dutch VAT (as the VAT is shifted from the supplier to the customer). If according to certain criteria the lease qualifies as a finance lease, the lease will  be considered a delivery of goods for Dutch VAT purposes. What does it cost to file a Dutch VAT return? In other situations, the lease will qualify as providing of services. The Dutch value added tax is a consumption tax, which is supposed to be borne by the consumer. It is relevant for your business to comply with the invoicing requirements in order to prevent penalties. Furthermore, your customer, being the recipient of an incorrect invoice, may experience difficulties reclaiming VAT on the incorrect invoices it received. In particular for intra-community delivery of goods extensive reporting requirements exist. As you work to register your businesses in the Netherlands, it is useful to know which tax office applies to you and how you c… A Nil return stating that no VAT is due or is refundable could be done for a minimum amount of € 150. VAT tax returns have to be filed with the tax authorities on a monthly or quarterly basis, depending on the size of your business. the 2019 Dutch … If that is the case then usually you will be required to pay VAT in the Netherlands. If you are active in one of these lines of business, in general you are not allowed to charge VAT on your invoices and in addition VAT you have paid on your invoices is not refundable. In that case, VAT may become a cost for your business. Jeroom Remmers is the director of the TAPP Coalition. You must activate Javascript in order to view this website. export) are in general not subject to VAT. The VAT is often reverse-charged to the person receiving the service. For instance the VAT relating to meals and drinks is in general not refundable. Sometimes, it is a combination of … Although VAT is in essence a consumer tax, it is to be charged throughout every stage of the supply chain. Rates: 21%, 9% or 0% In the Netherlands, the standard VAT rate is 21%. The VAT registration threshold for established Dutch businesses is €1,350 of VAT due in a complete year. It is possible that your company performs both taxable and exempt transactions. If you are buying the car in one EU country and you intend to take and register it in another EU country, you need to inform the car dealer so you don't pay VAT there. If you are interested in our services, please feel free to contact us via e-mail or to call us at our office in Amsterdam at the number +31 (20) 5709440 or our office in Rotterdam at the number + 31 (10) 2010466. Under these rules a digital service supplier established outside the EU supplying digital services to a non-taxable person established or residing in the EU is in most cases obliged to charge VAT to that customer at the rate applicable in the country of the customer. The legal criteria are aimed to determine who is in fact the beneficial owner of the asset. A number of transactions - mainly in the financial (banking/insurances) and real estate sector but also various medical services and certain types of education - are tax exempt. Our accountants in the Netherlands can provide more details on this issue, but it is important to know that the value of the WOZ can vary depending on the value of the property and on the latest tax modifications … Every entrepreneur has to charge this BTW on its sales and remit it to the Dutch tax administration (Belastingdienst). Dutch words for vat include vat, bak, kuip, ton, teil, mengen and in een vat doen. The means that businesses function as the withholding agent for the Dutch tax authorities with respect to VAT. This is for instance the standard rule if a foreign company provides services to the Dutch market. Claiming refund of VAT Are goods bought by you or your enterprise in the Netherlands or are you involved with other costs? This means that the principles and the structure of the VAT regime are in general the same throughout the whole EU. Member states are however free to determine some aspects of the regime such as their domestic rates and turnover limits for registration. The standard VAT rate in the Netherlands is 21%, with a reduced rate of 6% for foodstuffs, books, passenger transport, hotel accommodation, and other goods and services. This means that a company which sold more than €100,000 in goods to the Netherlands during the previous financial year must apply the VAT rate of … The VAT is often reverse-charged to the person receiving the service. On Budget Day, September 18, 2018, the Dutch government released the 2019 Budget, which includes the proposals for amendments to the Dutch tax laws (i.e. For the purpose of the EU directive, digital services include the electronic transmission of software, games and information in a broad sense, as well as the subscription to radio and television channels, pay per view and other services supplied online via (international) databases and networks. Therefore you only pay the Dutch VAT if you supply a service in the Netherlands and if the VAT cannot be reverse-charged to your client. Any non-resident trader supplying goods in the Netherlands may face the obligation to Dutch VAT register , comply with the local laws, complete Dutch returns , Intrastat and other declarations. Ways to pay Make sure your payment will reach HM Revenue and Customs’ (HMRC) bank account by the deadline.You may have to pay a surcharge if you do not pay on time. You will also pay VAT if you import goods from countries outside When US companies deal with value added tax “VAT” challenges in Europe, whether newly established or well established, they often fall into the same avoidable traps. In case a loan was not made, the property taxation in the Netherlands for a non-resident is of 1.2% of the WOZ value (the price of the home at the official listed value). to non-EU countries) and intra-community (EU) supplies (see below). This page is for reference purposes only. Dutch VAT rates The Dutch standard VAT rate is 21% and applies to most goods and services. When you start up a business in the Netherlands or if you intend to supply goods or services to Dutch customers you will be confronted with the Dutch system of Value Added Tax ("VAT" in Dutch "BTW"). The specific information that you have to include on the invoice are the following: It is allowed to issue electronic invoices, provided that the origin and integrity of the invoice is guaranteed. As of 2021 changes to the EU VAT-system with respect to e-commerce will be implemented. The application may Value Added Tax (VAT Rates) per Country. When you purchase goods from outside the EU (i.e. In general, the VAT must be included on the invoice issued by the supplier of goods or services. The balance is either to be paid to the tax authorities or to be refunded to you by the tax authorities . A 0% rate applies to exports (i.e. VAT is now being collected at the point of sale rather than at the point of importation. The Dutch standard VAT rate is 21% and applies to most goods and services. All EU member states must adhere to the Directive, and the standard VAT rate must be 15% or higher. The Dutch supplier may only do this, however, if you give him your German VAT identification number (see section 3.2.1). VAT relating to purchase and sale of goods, VAT is often reverse-charged to the person receiving the service, organise musical or theatrical performances. Here are the main tax types that you will most likely encounter in the Netherlands: Whether you're a Dutch citizen or an expat, you are required to pay taxes if you earn money while living in the Netherlands. It should be noted that for a number of commodities, deferment is compulsory. If you supply goods or services in the Netherlands to a Dutch company or legal entity with its registered office in the Netherlands, you are in principle required to pay Dutch VAT. consumer tax). These traps include: the assumption that VAT is similar to US sales tax or GST (it is not), and a belief that VAT does not apply to non-European businesses (it does). A Dutch business buying goods from another EU country will generally pay VAT on those goods in the Netherlands. You have to pay VAT in the country where you register the car. VAT should be charged on the total price of the car - this includes any accessories or associated costs, such as delivery costs. 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