netherlands-flag
Summary

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

Compliance and rates

 

VAT number format

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).

 

VAT rates

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

 

VAT payments and returns

All businesses with Dutch VAT number must submit periodic VAT reports and payments.

VAT Returns frequency

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.

  • Monthly – Last day of the month following the taxation period (i.e. for January, deadline is 31st March)
  • Quarterly – Last day of the month following the taxation perio (i.e. for Q1, deadline is 31st May)
  • Annualy – Last day of the Q1 (i.e. for 2019, deadline is 31st March)
Penalties in case of late filings or misdeclarations

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.

Invoice requirements

Invoices issued in Netherlands must contain the following information:

  • supplier / issuer data (company name, address)
  • customer data (address and other data if available)
  • a unique number of the invoice
  • date of issuance
  • shipping/delivery date
  • full description of goods and services provided
  • net price per unit
  • rate and amount of VAT applicable for the category of goods and services provided
  • the date of payment if it differs from the invoice date
  • the VAT amount
  • the invoice total
Penalties for non-compliance with invoicing

In case of failure to comply with various invoicing obligations the tax authorities may impose a penalty with a maximum of EUR 5,278.)

 

E-Invoicing

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.

 

Tax control with an XML Auditfile Financieel

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.

Turnkey invoice compliance.

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