October 11th, 2023
In the Netherlands VAT returns (‘BTW-aangifte’) need to be filed every quarter, and can be filed by entrepreneurs or authorized persons like tax representatives. Monthly returns are also possible, though quarterly returns are the most common format.
Q1 ends on March 31st. From this point onwards businesses with VAT obligations have one month to file their VAT return and pay any amount due for that period, in this case, by the end of April, or face potential fines. The Netherlands is strict on VAT deadlines and fines, so pay close attention and ensure you file your VAT returns in the Netherlands on time. You can establish a VAT alert to ensure timely VAT returns.
| Period | Your tax return and payment must be received by |
|---|---|
| 3rd quarter 2026 | October 31, 2026 |
| 4th quarter 2026 | January 31, 2027 |
| 1st quarter 2027 | April 30, 2027 |
| 2nd quarter 2027 | July 31, 2027 |
| 3rd quarter 2027 | October 31, 2027 |
| 4th quarter 2027 | January 31, 2028 |
Do I need to pay VAT in the Netherlands?
If your business has been registered at the Dutch Chamber of Commerce, you have likely received a VAT number and are liable to pay VAT. Some services and goods are VAT exempt, such as childcare, funeral services, language teaching, or work carried out for parties in some third countries. Some services also have different rates of VAT to be applied. Generally speaking, there is a higher general rate of 21%, a lower rate of 9%, and full exemptions at 0%.
In a VAT return, you must register the amount of VAT charged to your clients, and the amount of VAT charged to you, in order to determine the amount owed in the VAT return.
The Dutch tax authorities can choose to investigate VAT returns in detail, so it’s best to keep systematic and well-organized records.
How do I file a VAT return in the Netherlands?
VAT returns are filed digitally in the Netherlands. To do so, you must make an account and login at Mijn Belastingdienst Zakelijk, which refers to your online business VAT portal. In the Netherlands, there is a system for accessing public services related to individuals online involving a DigiD (digital identification).
VAT returns can also be filed using software applications from commercial parties. Be aware that the software must comply with Standard Business Reporting (SBR) rules.
Of course, you can also engage Broadstreet or another professional firm to file the VAT return on your behalf.
Are you eligible for the Small Businesses Scheme (KOR)?
Entrepreneurs with an annual turnover that does not exceed EUR 20,000 can participate in the small businesses scheme (‘kleineondernemersregeling’ or ‘KOR’). The relevant application form must be sent to the Tax Administration 4 weeks before the start of your next filing period. Once you take part in the scheme, you do not need to charge VAT to your customers, or file VAT returns.
Using the small businesses scheme may be interesting as it will ease the burden of administration. But you should note that entrepreneurs cannot reclaim VAT paid on business costs and expenses if they qualify for this scheme. Also, from a financial point of view, using the small businesses scheme may not be beneficial.
VAT returns, and the potential fines, are a well-known headache for entrepreneurs and self-employed persons in the Netherlands. Consult with a tax professional or consider professional services to ensure you are paying the right amount of VAT and maximize the benefits of running a small business.
