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VAT (BTW) - Netherlands 2025
Value Added Tax (Belasting over de Toegevoegde Waarde) is a consumption tax applied to most goods and services in the Netherlands. It's one of the largest sources of government revenue.
Key Points
- Standard rate: 21% on most goods and services
- Reduced rate: 9% on essentials (food, medicines, books, public transport)
- Zero rate: 0% on exports and specific items (solar panels for homes)
- Businesses can deduct input VAT on business purchases
- Consumers pay VAT as part of the final price
- Some services are exempt (healthcare, education, financial services)
- Digital services from foreign companies also subject to Dutch VAT
- VAT is included in displayed prices for consumers
Regional Rates
Calculation Example
Example: Monthly Household Spending
Total VAT paid: €36 (groceries) + €168 (other items at 21%) = €204 per month in VAT payments.
Frequently Asked Questions
Why do some items have 9% VAT while others have 21%?
The reduced 9% rate applies to essential goods and services like food, medicines, books, and public transport. The 21% standard rate applies to most other goods and services.
Can I get VAT refunds as a consumer?
Generally no, consumers cannot reclaim VAT. Only businesses can deduct input VAT. However, tourists from non-EU countries can get VAT refunds on purchases over €50.
Do online purchases from other countries include Dutch VAT?
For purchases within the EU, you pay VAT in the seller's country if under €150, or Dutch VAT if over €150. Non-EU purchases may require paying Dutch VAT at customs.
Are there any VAT-free purchases?
Yes, exports, intra-EU supplies to businesses, and certain specific items like solar panels for private homes have 0% VAT. Some services like healthcare and education are VAT-exempt.