As a global entrepreneur, the thought of expanding your business into the Netherlands can be both exciting and nerve-wracking. One of the first steps in this process is to apply for a Value Added Tax (VAT) number. In this comprehensive guide, we will walk you through the process and explain every step in detail.

A Brief Introduction to VAT in the Netherlands

VAT, or BTW as it is known in the Netherlands, is a form of indirect tax on the consumption of goods and services. As a business owner, it’s crucial to understand the VAT regulations in the country you’re operating in. This is especially true for foreign entrepreneurs who want to conduct business in the Netherlands.

Who Needs a VAT Number?

Any business that sells goods or services in the Netherlands is subject to VAT. This includes businesses that are not established in the country but engage in commercial activities there. Thus, if you are a foreign entrepreneur who plans to supply goods or services in the Netherlands, you will need to register for a VAT number.

The Role of Belastingdienst in VAT Registration

Belastingdienst, the Dutch Tax and Customs Administration, is responsible for the registration and administration of VAT in the Netherlands. They handle matters concerning Dutch VAT for all foreign entrepreneurs, except for those who make use of a tax representative.

How to Apply for VAT in Holland

To apply for a VAT number in the Netherlands, you will need to complete the ‘Registration form Foreign companies’. This form is provided by Belastingdienst and can be found on their website. Once you have filled out and submitted the form, you will receive your VAT number within a few weeks.

When to Register for VAT in the Netherlands

There are certain situations when you are required to register for VAT in the Netherlands:

• You import or export goods within the European Community and are required to submit a VAT return.
• You are a non-EU entrepreneur who is not obliged to submit a VAT return but wish to claim a refund of VAT.
• You are a non-EU entrepreneur who wishes to use the One Stop Shop via the Netherlands.

It’s worth noting that you might not need to register for VAT if you are an entrepreneur from another EU country and are not obliged to submit a VAT return. You can submit a claim for a refund of VAT in your own country.

Registration with the Tax Administration

When you register with the Tax Administration, you are acknowledging which tax office will be dealing with your VAT business. The Tax Administration/Department of International Issues deals with matters concerning Dutch VAT for all foreign entrepreneurs.

VAT Rates and Calculations

VAT rates in the Netherlands vary depending on the type of goods or services you provide. The standard VAT rate is 21%, but a reduced rate of 9% applies to certain goods and services. There are also some goods and services that are exempt from VAT.

Dealing with VAT Returns and Payments

Once you are registered for VAT, you will be required to periodically submit VAT returns. This usually involves declaring your taxable turnover and the amount of VAT you owe. You will also need to pay the VAT you owe to the Tax Administration.

Claiming Refund of VAT

If you’ve paid VAT on business expenses in the Netherlands, you might be able to claim a refund. This can be done through the VAT return form provided by the Tax Administration.

VAT for E-commerce and Digital Services

Different VAT rules apply to e-commerce and digital services. In general, VAT on digital services provided to private individuals is taxed in the customer’s country of residence.

House of Companies: Your Partner in VAT Registration

At House of Companies, we provide a self-governance portal that allows you to apply for a VAT number in the Netherlands without the need for local experts or setting up a local entity. Our fixed yearly fee includes all the services you need to register for VAT in the Netherlands. Apply for your VAT number in the Netherlands now!

Applying for a VAT number in the Netherlands might seem like a daunting task, but with the right information and guidance, it can be a smooth process. By following the steps outlined in this guide, you’ll be on your way to expanding your business in the Netherlands in no time.