October 11th, 2023
VAT returns (BTW-aangifte in Dutch) in the Netherlands are filed every quarter, and can be filed by entrepreneurs or authorized persons like tax representatives. Businesses must submit their VAT returns every quarter. 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 for that period, in this case, by the end of April, or face potential fines. The Netherlands are very 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 |
|---|---|
| 4th quarter 2022 | January 31, 2023 |
| 1st quarter 2023 | April 30, 2023 |
| 2nd quarter 2023 | July 31, 2023 |
| 3rd quarter 2023 | October 31, 2023 |
| 4th quarter 2023 | January 31, 2024 |
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 they have paid out, and the amount they have received, in order to determine the amount owed in the VAT return.
The amount of VAT to be paid can be offset through work-related purchases and expenses, staff benefits, catering, travel costs, office equipment, and so on, as long as these can be justified as a necessary work-related expense. The Dutch tax authorities can choose to investigate VAT returns in detail, so it’s best to keep systematic and well-organized books.
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.
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 in Dutch). The relevant application form must be sent to the tax Administration 4 weeks before the start of your next filing period. Falling under the small business scheme means you do not need to charge VAT to your customers, or file VAT returns. However, entities within the small business scheme cannot deduct VAT on business costs and expenses.
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’re paying the right amount of VAT and can maximize the benefits of running a small business.
