The Netherlands (sometimes known as Holland) was a founding member of the European Union in 1952 and also became a member of the Eurozone in 1999, adopting the currency of the Euro. Additionally, the country is part of the Schengen Area.

VAT rates in the Netherlands

The standard rate of VAT is 21%, and a reduced rate of 6% is available.

VAT registration in the Netherlands

There is no VAT registration limit in the Netherlands for either established or non-established businesses.

Distance sales have a limit of €100,000 for VAT registration.

The format for a VAT identification number is: NL 123456789B 11 12. Every company must hold a number like this in order for accurate taxation.

VAT returns are usually submitted quarterly but depending on turnover returns can be filed monthly or annually.

Are there any Intrastat thresholds in the Netherlands?

Yes. There is a limit of €900,000 for both dispatches and arrivals.

VAT recovery in the Netherlands

  • Is VAT recovery permitted for non-established non-EU businesses?

Yes, allows VAT recovery for all non-EU countries.

  • Are there any non-VAT recoverable expenses?

Yes, recovery of input tax is restricted on certain items, i.e. alcohol and tobacco.

Reverse charge applies to the majority of cross border services. An extended charge applies to services provided by a non-established business to a VAT registered customer in the Netherlands.

Requirements and regulations in the Netherlands

Any company established in a non-EU member country must appoint a tax representative to register for VAT in the Netherlands.

Use and enjoyment rules apply in the Netherlands.

The period of VAT recovery by tax authorities has a timescale of 5 years in order to prevent fraud.

Similarly, there is a period of 5 years for VAT deductions and refunds.

Please contact us for further information about paying taxes in the Netherlands, and a member of our team will be happy to help you.

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