Standard VAT rate: 21%
E-Invoicing: mandatory in B2G, permitted but still not mandatory in B2C and B2B
Reporting type: XML Auditfile Financieel
Digital service tax: no
All EU member states have a fixed format for their VAT numbers. In Netherlands, it includes the prefix NL, 9 digits, then letter B and then 2-digit company index (i.e. NL012345678B01).
The standard VAT rate in Netherlands is 21%, with reduced rate of 9% on certain goods and services. A number of services are exempt from the Dutch VAT, such as education, health care, childcare, insurance and banking services.
21% (Standard) – Applies to all taxable supplies, with certain exceptions
9% (Reduced) – Food and drink, agricultural products and services, medicines, books, daily newspapers and magazines
0% (Zero) – exportations and international transport
All businesses with Dutch VAT number must submit periodic VAT reports and payments.
For all companies that operate in Netherlands, VAT returns must be submitted on a monthly, quarterly, or annualy basis, depending on the amount of VAT that the business entity must pay.
For non-payment, late or insufficient payment of VAT, the tax authorities can impose a penalty of a maximum of EUR 5,278 (for ‘careless’ errors) and a maximum of 100% of the VAT due (for fraud).
If a VAT return is not submitted within the legal deadline, the tax authorities may impose a penalty with a maximum of EUR 131.
Invoices issued in Netherlands must contain the following information:
In case of failure to comply with various invoicing obligations the tax authorities may impose a penalty with a maximum of EUR 5,278.)
From 2017, all suppliers billing the Government will be obligated to submit their invoices electronically.
For B2B and B2C transactions, issuance of invoices electronically is permitted, but still not mandatory.
Every entrepreneur that operates in the Netherlands has to deal with an annual audit by the Dutch Tax Authorities.
The Tax and Customs Administration (Belastingdienst) has developed an XML Audit file for this purpose, which contains most of the data necessary for the audit. The XML Auditfile Financieel has been developed in collaboration with SRA, software suppliers and the tax authorities. The XML audit file is currently supported by most accounting packages in the Netherlands.