Dutch VAT returns

Any company registered with the Dutch tax authorities (see our Dutch VAT registration briefing) as a non-resident VAT trader must report taxable transactions through periodic filings, known as returns.

In the Netherlands the standard VAT return period is quarterly. Monthly returns are required if a business usually has to pay more than EUR15,000 in VAT per quarter. In addition, monthly returns may be required if a business is often late with VAT payments. Resident businesses which are liable for less than EUR1,883 a year and have an intra-Community supply and acquisition value of less than EUR10,000 are required to file annually.

Companies can offset sales or output VAT declared in the Dutch VAT return with the corresponding input or purchase VAT. There are some exceptions, including:

• Certain staff benefits (sports and recreation facilities, accommodation, transport for personal use, provision of food and drink)
• Catering and Restaurants

Any Dutch monthly or quarterly VAT filing is due on the last day of the month following the period end. For companies filing an annual VAT return the deadline is 31^st March of the following year. Foreign businesses may submit their tax return up to 8 weeks after the end of the relevant tax period.

Any Dutch VAT due must be paid in EUR by the same deadlines that apply to VAT return filings. Payment can be made electronically.

In the Netherlands, foreign businesses have been required to submit VAT returns electronically since January 2014. This is done through the Tax Department’s website http://www.belastingdienst.nl

If there are misdeclarations or late fillings of Netherlands VAT returns, foreign companies may be subject to penalties of up to EUR4,920. Interest is charged on any VAT due. The rate is reviewed by the Tax Department twice yearly. It is currently set at 4% per annum.

There is no statute of limitations for Dutch VAT; however recovery of VAT by the Dutch tax authorities is limited to a period of five years after the time when the company was first required to pay VAT.

If there is a surplus of VAT inputs over outputs (more VAT incurred than charged), then a Dutch VAT credit arises. In theory, this is due back to the VAT registered business. Excess input VAT can be reclaimed when filing a VAT return. Claims should be made within 5 years of the relevant VAT period.