Dutch VAT rates and VAT compliance
Dutch rates
The Netherlands, like other European Union (EU) member countries, follows the EU VAT Directive on value added tax (VAT) compliance. However, the Netherlands is still free to set its own standard (upper) VAT rate on the EU provision that this rate is above 15%. As a result, the standard Netherlands VAT rate is currently set at 21%.
Suppliers of goods or services VAT registered in the Netherlands must charge the appropriate VAT rate, and collect the tax for onward payment to the Dutch tax authorities through a VAT filing.
VAT exemptions in the Netherlands
Some goods and services are not subject to VAT in the Netherlands. Exemptions include medical services such as consultations for individuals with doctors, paramedics, psychologists, dentists, and care homes, legally regulated education as well as general, vocational, and arts education.
Registered childcare centres and childminding services are also exempt from VAT within the Netherlands. A number of home care services may also be exempt from VAT, including privately operated care homes, hospitals, or other care institutions.
Though not technically an exemption, small businesses with an annual turnover of under €20,000 can also apply for the ‘Kleineondernemersregeling’ — a scheme that allows for VAT exemption for small businesses.
Registration thresholds
For foreign businesses conducting business activities within the Netherlands that are VAT registered in their home state, the VAT registration threshold is nil. Until the end of 2024, businesses established in the Netherlands must register for VAT if they exceed the €25,000 annual turnover threshold. From 2025 this threshold will be set at €20,000
For EU VAT-registered companies selling goods over the internet (distance selling) to consumers in the Netherlands, the VAT registration threshold is €100,000 per annum. Upon reaching this threshold, EU businesses must register with the correct tax authorities.
To register for VAT in the Netherlands, businesses can apply online through the Dutch Tax and Customs Administration website.
If a foreign company is liable to account for VAT, and has obtained a VAT number, it must then comply with local VAT rules. This includes:
Preparing invoices with the disclosure details outlined in Dutch law
Maintaining accounts and records, which must be held for at least seven years
Correct invoicing of customers for goods or services in accordance with the Dutch time of supply VAT rules
What is the tax point?
The tax point (time of supply) rules in the Netherlands determine when the VAT is due. It’s then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).
Other resources
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