What is the VAT (BTW) rate in the Netherlands in 2025?

In 2025, the standard VAT rate in the Netherlands is 21%, and the reduced rate is 9%. Which rate applies depends on the type of goods or services you sell.

Do I need to register for VAT (BTW) as a ZZP?

In most cases, yes: if you sell VAT-taxable goods or services, you will receive a VAT number after registering your business (typically via the KVK). A common exception is opting into the KOR scheme (small business VAT exemption), which removes VAT obligations but also removes input VAT deduction.

What is the KOR scheme and when does it apply?

The KOR (Kleineondernemersregeling) is a small business scheme that can exempt you from VAT obligations if your annual turnover stays below €20,000. You must opt in; it is not automatic.

Can I reclaim VAT on business expenses?

Yes, if you are VAT-registered (and not using KOR) you can generally deduct input VAT on business expenses, provided you have valid invoices and the costs are for taxable business activities. Mixed private/business use often requires a proportional split.

What is the difference between 0% VAT and VAT-exempt?

With 0% VAT (zero-rated), you charge 0% to the customer but you can usually still reclaim input VAT on related business costs. With VAT-exempt activities, you do not charge VAT and you typically cannot reclaim input VAT linked to those exempt sales.

When does the reverse charge apply?

Reverse charge (VAT shifting) can apply in specific situations, for example certain cross-border EU B2B services or specific sectors where fraud risk is higher. In a reverse-charge invoice, you do not charge VAT; the customer accounts for VAT instead. Always ensure your invoice includes the required reverse-charge wording.

Do I need to validate an EU customer’s VAT number?

Yes. For many 0% intra-EU B2B supplies, you must have a valid customer VAT number and keep evidence that you checked it (commonly via VIES). Without validation evidence, you may lose the right to apply 0% VAT.

Dutch VAT (BTW) Guide 2025: Rates, Registration & Compliance

Complete guide to Dutch VAT (BTW) in 2025. Learn about VAT rates, registration thresholds, filing requirements, exemptions, and EU cross-border rules.

12 min read

4,050 words

Updated: 2025-12-18

1.What is VAT (BTW)?

Standard VAT rate

21.0%

Most goods and services

Reduced VAT rate

9.0%

Selected essentials (e.g., food, books)

VAT (Value Added Tax), known as BTW (Belasting over de Toegevoegde Waarde) in Dutch, is a consumption tax added at each stage of production and distribution.

How VAT Works

Businesses charge VAT on sales (output VAT)
Businesses pay VAT on purchases (input VAT)
Net VAT (output minus input) is paid to tax authorities
Final consumer bears the full VAT burden

2025 VAT Rates:

Rate	Percentage	Applied To
Standard	21%	Most goods and services
Reduced	9%	Food, books, medicines, public transport
Zero	0%	Exports, international transport

Who Must Charge VAT

All businesses selling goods or services in NL
Unless exempt or under KOR scheme
Foreign businesses selling to Dutch consumers

Key Dates

VAT returns: Monthly, quarterly, or annually
Payment: By end of month following return period
Annual summary: With year-end return

Quick Summary

Standard VAT rate in 2025: 21.0% (most goods/services)
Reduced VAT rate: 9.0% (selected essentials)
KOR scheme threshold: €20,000 turnover/year (opt-in)
0% VAT and VAT-exempt are different (affects input VAT deduction)

Use the VAT calculator

Calculate VAT (BTW) for your situation

Quickly calculate VAT amounts and totals (incl/excl) with our free calculator.

Open VAT calculator

2.VAT Registration

Most businesses must register for VAT, but small businesses have alternatives.

When Registration is Required

Starting a business that sells taxable goods/services
Turnover exceeds KOR threshold (€20,000)
Providing services to other EU countries
Importing goods

How to Register: 1. Register business with Chamber of Commerce (KVK) 2. Receive automatic VAT number from Tax Authority 3. Or apply separately via Belastingdienst

VAT Number Format

NL + 9 digits + B + 2 digits
Example: NL123456789B01

Timeline

Usually received within 2-3 weeks
Can take longer for foreign applicants
Retroactive registration possible in some cases

If you're based outside NL but sell to Dutch consumers:

Foreign Businesses

Registration required if exceeding distance selling threshold
One-Stop-Shop (OSS) available for EU-based businesses
Non-EU businesses need fiscal representative

3.Small Business Scheme (KOR)

KOR turnover threshold

€20,000

Annual turnover (opt-in required)

The KOR (Kleineondernemersregeling) exempts small businesses from VAT obligations.

2025 Threshold

Turnover under €20,000 per year

Benefits of KOR

No VAT on invoices (can charge lower prices)
No VAT returns required
Simplified administration
Still file annual turnover report

Disadvantages

Cannot reclaim VAT on purchases
Must stay opted in for 3 years minimum
Exceeding threshold = immediate full VAT compliance

Best For

Service providers to consumers (B2C)
Low-expense businesses
Side businesses with small turnover

Not Recommended For

B2B businesses (customers expect VAT invoices)
High startup costs (lose VAT reclaim)
Businesses near €20,000 threshold

How to Apply

Opt in via Belastingdienst online portal
Takes effect from start of next calendar quarter
Can opt out after 3 years

When opting into KOR

Confirmation of KOR registration (Belastingdienst)
Turnover tracking (rolling annual view)
Record of business expenses (you cannot reclaim VAT)

When leaving KOR

End date / deregistration confirmation
Updated invoice template including VAT
VAT return deadlines/calendar

Practical Tips

With low turnover, you can opt for the KOR scheme and NOT charge VAT to clients. Simpler administration!

Action Steps

1.Apply for KOR at Belastingdienst (opt-in)
2.Must commit for at least 3 years
3.You don't charge clients BTW = competitive advantage
4.BUT you can't reclaim BTW on your purchases
5.Best if: clients are consumers, low business expenses
6.If you exceed €20k in a year, you owe ALL VAT retroactively

4.VAT Rates Explained

Standard VAT rate

21.0%

Reduced VAT rate

9.0%

Applying the correct VAT rate is essential for compliance.

Applies to most goods and services including:

Standard Rate (21%)

Electronics and appliances
Clothing and footwear
Professional services (consulting, accounting)
Restaurants and catering
Entertainment and events
Most retail goods

Applies to essential and cultural goods:

Reduced Rate (9%)

Food and non-alcoholic beverages (for home consumption)
Books, newspapers, magazines (print and digital)
Medicines and medical aids
Public transport
Hotel accommodation
Cultural events (museums, concerts)
Hairdressers and barbers
Repair services (bicycles, shoes, clothing)

No VAT charged, but VAT on purchases reclaimable:

Zero Rate (0%)

Exports outside the EU
International transport
Supplies to other EU businesses (with valid VAT number)
Ships and aircraft for international traffic

No VAT charged AND no input VAT reclaim:

Exempt (No VAT)

Healthcare and medical services
Education
Banking and insurance
Real estate sales (optional VAT possible)
Charitable organizations (certain activities)

VAT calculation (incl/excl) example

Scenario: Invoice €1,000 excl. VAT at the standard rate

Net price (excl. VAT)

€1,000

VAT (21.0%)

+€210

Total (incl. VAT)

€1,210

5.VAT Invoice Requirements

Valid VAT invoices must contain specific information.

Required Elements: 1. Invoice number (sequential) 2. Invoice date 3. Your business name and address 4. Your VAT number 5. Customer name and address 6. Customer VAT number (for B2B EU sales) 7. Description of goods/services 8. Quantity and unit price 9. VAT rate(s) applied 10. VAT amount per rate 11. Total amount including VAT

Simplified Invoices (under €100)

Date
Supplier identification
Description of goods/services
Total amount including VAT
VAT rate or statement of exemption

Digital Invoices

Equally valid as paper
Must be stored for 7 years
Must be readable and unaltered
PDF format acceptable

Common Mistakes

Missing VAT number
Incorrect rate applied
Calculation errors
Missing customer details for B2B

If you make an error:

Correction Invoices

Issue credit note referencing original
Issue new corrected invoice
Document the correction

Invoice basics (keep on every invoice)

Invoice date and unique invoice number
Your business name/address and VAT number
Customer details (and VAT number for B2B EU)
Description of goods/services and date of supply
Amounts excl. VAT, VAT rate, VAT amount, total incl. VAT
Reverse charge wording if applicable

Administration you should retain

Purchase invoices (for input VAT deduction)
Bank statements linked to invoices
Contracts / order confirmations (B2B)
Evidence for EU supplies (VIES check + transport evidence where needed)

6.Filing VAT Returns

VAT returns must be filed regularly with accurate calculations.

Filing Frequency:

Turnover	Frequency
Under €1,883/quarter VAT	Annual
€1,883-15,000/quarter VAT	Quarterly
Over €15,000/quarter VAT	Monthly

Deadlines

Monthly: End of month following the period
Quarterly: End of month following quarter
Annual: By March 31st following year

Return Contents

Output VAT (VAT charged on sales)
Input VAT (VAT paid on purchases)
Net VAT payable or refundable
EU acquisitions and supplies
Services to/from abroad

Filing Methods

Online via Belastingdienst portal
Through accounting software (direct connection)
Through tax advisor

Payment

Due same date as return
Bank transfer or direct debit
Interest charged on late payment

Refunds

If input VAT exceeds output VAT
Processed within 8 weeks
May trigger audit for large claims

7.EU Cross-Border Rules

Special rules apply for transactions with other EU countries.

B2B Sales to EU

Charge 0% VAT (intracommunautaire levering)
Require valid customer VAT number
Report on quarterly ICP declaration
Customer reports as acquisition

B2B Purchases from EU

Supplier charges 0%
You report acquisition and pay Dutch VAT
Reclaim same VAT (net zero effect)
Report on VAT return

B2C Sales to EU Consumers

OSS (One-Stop-Shop) simplifies compliance
Register once in NL, report all EU sales
Pay VAT at destination country rates
Threshold: €10,000 total EU distance sales

Services to EU

B2B: Generally taxed where customer is established
B2C: Generally taxed where you are established
Exceptions: Events, transport, property-related

ICP Declaration

Quarterly report of B2B sales to EU
Lists customer VAT numbers and values
Due by end of month following quarter

VIES Validation

Always verify customer VAT numbers
Use VIES database (ec.europa.eu)
Keep validation records

8.Input VAT Deduction

Reclaiming VAT on business purchases requires proper documentation.

Fully Deductible

Goods for resale
Business equipment and supplies
Professional services for business
Business travel and accommodation
Marketing and advertising

Partially Deductible

Mixed-use vehicles (business/private split)
Home office costs (business percentage)
Phones used partly privately
Entertaining clients (limitations apply)

Not Deductible

Private purchases
Food and drink (except business entertaining, with limits)
Luxury goods with significant private element
Cars for directors (special rules)

Documentation Required

Valid VAT invoice in your name
Proof of business use
Payment evidence

Timing

Reclaim in period invoice is received
Or when goods/services are delivered
Corrections possible up to 5 years

Special Cases:

Company Cars

50% private use assumed
Track actual business km for higher deduction
Electric vehicles: Full deduction possible

Working from Home

Proportional deduction allowed
Based on dedicated workspace size
Utilities: Business percentage

9.VAT Compliance Tips

Stay compliant and avoid penalties with these best practices.

Record Keeping

Keep all invoices for 7 years
Organize by period (monthly/quarterly)
Digital storage acceptable
Back up regularly

Common Compliance Issues

Late filing (immediate fine)
Incorrect rate application
Missing invoices
Unverified EU customer VAT numbers
Mixed-use deduction errors

Penalties

Late filing: €68 per return (first offense)
Repeat late: Up to €5,514
Late payment: Interest (currently ~4%)
Fraud: Penalties up to 100% of VAT due

Audit Triggers

Large VAT refund claims
Significant changes in turnover
Discrepancies between returns and annual accounts
Industry-specific risk profiles

Consider a tax advisor if:

Professional Help

Complex transactions (international, real estate)
Significant turnover
Multiple activities with different rates
First year of business

Software Recommendations

Use accounting software with VAT features
Automate rate application
Generate compliant invoices
Track filing deadlines

Calculate It Yourself

Use our free calculators to calculate your personal situation:

Vat

Related Guides

Tax Filing Guide 2025

ZZP Tax Deductions Guide

Frequently Asked Questions

Official Sources

Information verified with government websites

Disclaimer

This guide is intended for general informational purposes and does not constitute personal tax advice. Please consult a tax advisor for advice on your specific situation.

View all guides

Calculate VAT (BTW) for your situation

Quickly calculate VAT amounts and totals (incl/excl) with our free calculator.

Open VAT calculator

Dutch VAT (BTW) Guide 2025: Rates, Registration & Compliance

Complete guide to Dutch VAT (BTW) in 2025. Learn about VAT rates, registration thresholds, filing requirements, exemptions, and EU cross-border rules.

12 min read

4,050 words

Updated: 2025-12-18

1.What is VAT (BTW)?

Standard VAT rate

21.0%

Most goods and services

Reduced VAT rate

9.0%

Selected essentials (e.g., food, books)

VAT (Value Added Tax), known as BTW (Belasting over de Toegevoegde Waarde) in Dutch, is a consumption tax added at each stage of production and distribution.

How VAT Works

Businesses charge VAT on sales (output VAT)
Businesses pay VAT on purchases (input VAT)
Net VAT (output minus input) is paid to tax authorities
Final consumer bears the full VAT burden

2025 VAT Rates:

Rate	Percentage	Applied To
Standard	21%	Most goods and services
Reduced	9%	Food, books, medicines, public transport
Zero	0%	Exports, international transport

Who Must Charge VAT

All businesses selling goods or services in NL
Unless exempt or under KOR scheme
Foreign businesses selling to Dutch consumers

Key Dates

VAT returns: Monthly, quarterly, or annually
Payment: By end of month following return period
Annual summary: With year-end return

Quick Summary

Standard VAT rate in 2025: 21.0% (most goods/services)
Reduced VAT rate: 9.0% (selected essentials)
KOR scheme threshold: €20,000 turnover/year (opt-in)
0% VAT and VAT-exempt are different (affects input VAT deduction)

Use the VAT calculator

Calculate VAT (BTW) for your situation

Quickly calculate VAT amounts and totals (incl/excl) with our free calculator.

Open VAT calculator

2.VAT Registration

Most businesses must register for VAT, but small businesses have alternatives.

When Registration is Required

Starting a business that sells taxable goods/services
Turnover exceeds KOR threshold (€20,000)
Providing services to other EU countries
Importing goods

How to Register: 1. Register business with Chamber of Commerce (KVK) 2. Receive automatic VAT number from Tax Authority 3. Or apply separately via Belastingdienst

VAT Number Format

NL + 9 digits + B + 2 digits
Example: NL123456789B01

Timeline

Usually received within 2-3 weeks
Can take longer for foreign applicants
Retroactive registration possible in some cases

If you're based outside NL but sell to Dutch consumers:

Foreign Businesses

Registration required if exceeding distance selling threshold
One-Stop-Shop (OSS) available for EU-based businesses
Non-EU businesses need fiscal representative

3.Small Business Scheme (KOR)

KOR turnover threshold

€20,000

Annual turnover (opt-in required)

The KOR (Kleineondernemersregeling) exempts small businesses from VAT obligations.

2025 Threshold

Turnover under €20,000 per year

Benefits of KOR

No VAT on invoices (can charge lower prices)
No VAT returns required
Simplified administration
Still file annual turnover report

Disadvantages

Cannot reclaim VAT on purchases
Must stay opted in for 3 years minimum
Exceeding threshold = immediate full VAT compliance

Best For

Service providers to consumers (B2C)
Low-expense businesses
Side businesses with small turnover

Not Recommended For

B2B businesses (customers expect VAT invoices)
High startup costs (lose VAT reclaim)
Businesses near €20,000 threshold

How to Apply

Opt in via Belastingdienst online portal
Takes effect from start of next calendar quarter
Can opt out after 3 years

When opting into KOR

Confirmation of KOR registration (Belastingdienst)
Turnover tracking (rolling annual view)
Record of business expenses (you cannot reclaim VAT)

When leaving KOR

End date / deregistration confirmation
Updated invoice template including VAT
VAT return deadlines/calendar

Practical Tips

With low turnover, you can opt for the KOR scheme and NOT charge VAT to clients. Simpler administration!

Action Steps

1.Apply for KOR at Belastingdienst (opt-in)
2.Must commit for at least 3 years
3.You don't charge clients BTW = competitive advantage
4.BUT you can't reclaim BTW on your purchases
5.Best if: clients are consumers, low business expenses
6.If you exceed €20k in a year, you owe ALL VAT retroactively

4.VAT Rates Explained

Standard VAT rate

21.0%

Reduced VAT rate

9.0%

Applying the correct VAT rate is essential for compliance.

Applies to most goods and services including:

Standard Rate (21%)

Electronics and appliances
Clothing and footwear
Professional services (consulting, accounting)
Restaurants and catering
Entertainment and events
Most retail goods

Applies to essential and cultural goods:

Reduced Rate (9%)

Food and non-alcoholic beverages (for home consumption)
Books, newspapers, magazines (print and digital)
Medicines and medical aids
Public transport
Hotel accommodation
Cultural events (museums, concerts)
Hairdressers and barbers
Repair services (bicycles, shoes, clothing)

No VAT charged, but VAT on purchases reclaimable:

Zero Rate (0%)

Exports outside the EU
International transport
Supplies to other EU businesses (with valid VAT number)
Ships and aircraft for international traffic

No VAT charged AND no input VAT reclaim:

Exempt (No VAT)

Healthcare and medical services
Education
Banking and insurance
Real estate sales (optional VAT possible)
Charitable organizations (certain activities)

VAT calculation (incl/excl) example

Scenario: Invoice €1,000 excl. VAT at the standard rate

Net price (excl. VAT)

€1,000

VAT (21.0%)

+€210

Total (incl. VAT)

€1,210

5.VAT Invoice Requirements

Valid VAT invoices must contain specific information.

Simplified Invoices (under €100)

Date
Supplier identification
Description of goods/services
Total amount including VAT
VAT rate or statement of exemption

Digital Invoices

Equally valid as paper
Must be stored for 7 years
Must be readable and unaltered
PDF format acceptable

Common Mistakes

Missing VAT number
Incorrect rate applied
Calculation errors
Missing customer details for B2B

If you make an error:

Correction Invoices

Issue credit note referencing original
Issue new corrected invoice
Document the correction

Invoice basics (keep on every invoice)

Invoice date and unique invoice number
Your business name/address and VAT number
Customer details (and VAT number for B2B EU)
Description of goods/services and date of supply
Amounts excl. VAT, VAT rate, VAT amount, total incl. VAT
Reverse charge wording if applicable

Administration you should retain

Purchase invoices (for input VAT deduction)
Bank statements linked to invoices
Contracts / order confirmations (B2B)
Evidence for EU supplies (VIES check + transport evidence where needed)

6.Filing VAT Returns

VAT returns must be filed regularly with accurate calculations.

Filing Frequency:

Turnover	Frequency
Under €1,883/quarter VAT	Annual
€1,883-15,000/quarter VAT	Quarterly
Over €15,000/quarter VAT	Monthly

Deadlines

Monthly: End of month following the period
Quarterly: End of month following quarter
Annual: By March 31st following year

Return Contents

Output VAT (VAT charged on sales)
Input VAT (VAT paid on purchases)
Net VAT payable or refundable
EU acquisitions and supplies
Services to/from abroad

Filing Methods

Online via Belastingdienst portal
Through accounting software (direct connection)
Through tax advisor

Payment

Due same date as return
Bank transfer or direct debit
Interest charged on late payment

Refunds

If input VAT exceeds output VAT
Processed within 8 weeks
May trigger audit for large claims

7.EU Cross-Border Rules

Special rules apply for transactions with other EU countries.

B2B Sales to EU

Charge 0% VAT (intracommunautaire levering)
Require valid customer VAT number
Report on quarterly ICP declaration
Customer reports as acquisition

B2B Purchases from EU

Supplier charges 0%
You report acquisition and pay Dutch VAT
Reclaim same VAT (net zero effect)
Report on VAT return

B2C Sales to EU Consumers

OSS (One-Stop-Shop) simplifies compliance
Register once in NL, report all EU sales
Pay VAT at destination country rates
Threshold: €10,000 total EU distance sales

Services to EU

B2B: Generally taxed where customer is established
B2C: Generally taxed where you are established
Exceptions: Events, transport, property-related

ICP Declaration

Quarterly report of B2B sales to EU
Lists customer VAT numbers and values
Due by end of month following quarter

VIES Validation

Always verify customer VAT numbers
Use VIES database (ec.europa.eu)
Keep validation records

8.Input VAT Deduction

Reclaiming VAT on business purchases requires proper documentation.

Fully Deductible

Goods for resale
Business equipment and supplies
Professional services for business
Business travel and accommodation
Marketing and advertising

Partially Deductible

Mixed-use vehicles (business/private split)
Home office costs (business percentage)
Phones used partly privately
Entertaining clients (limitations apply)

Not Deductible

Private purchases
Food and drink (except business entertaining, with limits)
Luxury goods with significant private element
Cars for directors (special rules)

Documentation Required

Valid VAT invoice in your name
Proof of business use
Payment evidence

Timing

Reclaim in period invoice is received
Or when goods/services are delivered
Corrections possible up to 5 years

Special Cases:

Company Cars

50% private use assumed
Track actual business km for higher deduction
Electric vehicles: Full deduction possible

Working from Home

Proportional deduction allowed
Based on dedicated workspace size
Utilities: Business percentage

9.VAT Compliance Tips

Stay compliant and avoid penalties with these best practices.

Record Keeping

Keep all invoices for 7 years
Organize by period (monthly/quarterly)
Digital storage acceptable
Back up regularly

Common Compliance Issues

Late filing (immediate fine)
Incorrect rate application
Missing invoices
Unverified EU customer VAT numbers
Mixed-use deduction errors

Penalties

Late filing: €68 per return (first offense)
Repeat late: Up to €5,514
Late payment: Interest (currently ~4%)
Fraud: Penalties up to 100% of VAT due

Audit Triggers

Large VAT refund claims
Significant changes in turnover
Discrepancies between returns and annual accounts
Industry-specific risk profiles

Consider a tax advisor if:

Professional Help

Complex transactions (international, real estate)
Significant turnover
Multiple activities with different rates
First year of business

Software Recommendations

Use accounting software with VAT features
Automate rate application
Generate compliant invoices
Track filing deadlines

Calculate It Yourself

Use our free calculators to calculate your personal situation:

Vat

Related Guides

Tax Filing Guide 2025

ZZP Tax Deductions Guide

Frequently Asked Questions

Official Sources

Information verified with government websites

Disclaimer

This guide is intended for general informational purposes and does not constitute personal tax advice. Please consult a tax advisor for advice on your specific situation.

View all guides

Calculate VAT (BTW) for your situation

Quickly calculate VAT amounts and totals (incl/excl) with our free calculator.

Open VAT calculator

Cookie Settings

Table of Contents

1.What is VAT (BTW)?

How VAT Works

Who Must Charge VAT

Key Dates

Quick Summary

Calculate VAT (BTW) for your situation

2.VAT Registration

When Registration is Required

VAT Number Format

Timeline

Foreign Businesses

3.Small Business Scheme (KOR)

2025 Threshold

Benefits of KOR

Disadvantages

Best For

Not Recommended For

How to Apply

When opting into KOR

When leaving KOR

Practical Tips

KOR: VAT Exemption (Turnover Under €20,000)

Action Steps

4.VAT Rates Explained

Standard Rate (21%)

Reduced Rate (9%)

Zero Rate (0%)

Exempt (No VAT)

VAT calculation (incl/excl) example

5.VAT Invoice Requirements

Simplified Invoices (under €100)

Digital Invoices

Common Mistakes

Correction Invoices

Invoice basics (keep on every invoice)

Administration you should retain

6.Filing VAT Returns

Deadlines

Return Contents

Filing Methods

Payment

Refunds

7.EU Cross-Border Rules

B2B Sales to EU

B2B Purchases from EU

B2C Sales to EU Consumers

Services to EU

ICP Declaration

VIES Validation

8.Input VAT Deduction

Fully Deductible

Partially Deductible

Not Deductible

Documentation Required

Timing

Company Cars

Working from Home

9.VAT Compliance Tips

Record Keeping

Common Compliance Issues

Penalties

Audit Triggers

Professional Help

Software Recommendations

Calculate It Yourself

Related Guides

Frequently Asked Questions

What is the VAT (BTW) rate in the Netherlands in 2025?

Do I need to register for VAT (BTW) as a ZZP?

What is the KOR scheme and when does it apply?

Can I reclaim VAT on business expenses?

What is the difference between 0% VAT and VAT-exempt?

When does the reverse charge apply?

Do I need to validate an EU customer’s VAT number?

Official Sources

Cookie Settings

Table of Contents

1.What is VAT (BTW)?