Consumption/VAT/Sales Tax in the Netherlands

Overview by
Nature of the Tax
BTW (Belasting Toegevoegde Waarde - the Dutch equivalent of the VAT)
Standard Rate
Reduced Tax Rate
Netherlands apply a reduced VAT rate of 6% on certain categories of goods and services, including foodstuffs, water supplies, pharmaceutical products, medical equipment for disabled persons, books, newspapers, hotel accommodation…
Exclusion From Taxation
There is a zero rate intended primarily for exported goods, sea going vessels and aircraft used for international transport, gold destined for central banks and activities within bonded warehouses or their equivalent.

There is also a zero rate for goods transported to another EU member state on which VAT is levied. Exemptions from VAT include educational services, medical services, banking and insurance transactions, postal services, non-commercial broadcasting, and the services of journalists, composers and writers.

For additional information, consult Expatax Website.

Method of Calculation, Declaration and Settlement
A business that is registered for VAT in the Netherlands must normally file a VAT return and make a payment to the tax administration on a monthly basis. The return and the payment must be received by the end of the following month. The filing can be made quarterly if VAT due does not exceed EUR 7,000 per quarter, or annually if the amount due is less than €1,883 per year. Penalties and interest charges are imposed for late filing or payment. VAT returns must be submitted electronically (since January 1st 2005), although companies based outside of the Netherlands may still file paper returns.

The complete tax overview of the Netherlands can be found on the website of the national fiscal authorities.

Other Consumption Taxes
Liquor tax, tobacco tax, gasoline tax, aviation fuel tax, liquefied petroleum gas tax, petroleum tax, motor vehicle tax, etc.

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Experts Views (1)
  • EU VAT Guide

    With 27 EU Member States, each with their own VAT legislation to consider, VAT can be a time consuming and confusing task for international business.

    Accordance on 24 Jan 2012 related to Consumption/VAT/Sales Tax in the Netherlands

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  • Accordance

    International VAT Compliance,