Once registered for value added tax (VAT) in the Netherlands, businesses must declare all taxable transactions and remit any VAT due to the Dutch tax authorities.

Dutch VAT returns are typically filed quarterly, but monthly filings may be required for businesses with high turnover or a history of noncompliance. Annual filings may be granted for small businesses with limited VAT liability.

• Monthly and quarterly VAT returns must be submitted by the last day of the month following the reporting period.

• Annual filers must submit their returns by 31 March of the following year.

The standard form used is the Omzetbelasting return.

Businesses must maintain comprehensive VAT records, including sales and purchase invoices, import and export documentation, and electronic records that align with Dutch bookkeeping standards. SAF-T is not currently mandatory in the Netherlands.

VAT payments are due by the same date the VAT return is due, generally the last day of the month following the reporting period. Late payments incur interest and potential penalties.

Input VAT may be reclaimed on goods and services used for taxable business activities, including:

• Goods purchased for resale

• Capital assets and business equipment

• Professional services and utilities

• Import VAT

• Proportional deductions for mixed-use expenses like travel and telecom

• VAT on cars may be partially deductible depending on use

 
No deduction is allowed for private expenses or certain entertainment costs.

Foreign businesses may recover Dutch VAT under the EU VAT Refund Directive (for EU entities) or through the 13th Directive process for non-EU companies.

All VAT returns must be submitted electronically via the Dutch Tax Administration’s online portal (Mijn Belastingdienst Zakelijk). VAT payments are made via bank transfer to accounts specified by the Belastingdienst.

Penalties may apply for noncompliance:

• Late filing penalties are generally modest but can have ceilings up to nearly €7,000 depending on the delay and nature of noncompliance

• Interest on late payments is currently 4% annually

• Additional penalties may apply for incorrect or fraudulent returns

If input VAT exceeds output VAT, the surplus may be carried forward or refunded. Refunds are generally issued within a few weeks if no further checks are required. Delays may occur if the tax authorities request additional documentation or launch an audit.