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Netherlands COVID-19 VAT 3-month payment delay

  • Jan 29, 2021 | Richard Asquith

29 Jan - the 3-month VAT deferment has been extended again. This time to 1 July 2021. This means repayment of total tax obligations should recommence on 1 October 2021. The extension is only on demand.

9 Jan - The Netherland gazetted a new 3-month delay offer on the payment of VAT until 31 March 2021.

9 Nov - the existing option for VAT regsitered businesses to apply for a VAT payment deferal for 3-months has been extended out to 1 January 2021.

27 May - the late penalty interest charge is to be dropped until 1 October 2020.

24 May - The Dutch tax office has extended the below VAT easements and payment extentions until 30 September 2020

22 April update - confirms measures below. Plus VAT exemptions for epidemic online supplies and health / exercise lessons until 16 June.

Update, 7 April update: The below VAT measuers have been extend to other sectors, including: gambling; insurance premium tax; accomodation taxes; environmental taxes; excise taxes.

23 March: The Dutch tax office has confirmed that it will not be enforcing the non-EU importer of record rules yet in light of the coronavirus epidemic.

The Dutch tax agency had previously published details of a range of Value Added Tax easements for businesses during the coronavirus epidemic. Other taxes will have similar easements.

Follow Avalara’s live global coronavirus Covid-19 VAT measures tracker.

Dutch VAT easements include:

  • Businesses may apply for delayed VAT payments for three months if they can show hardship as a result of the crisis. A longer period may be requested, but this will require additional supporting information.
  • A completed application will trigger an automatic pause on VAT liabilities.
  • The tax office may cancel any penalties or interest for any late payments. This is done as soon as the application is received. 
  • Late penalty interest will be reduced from 4% to 0.01% from 1 June if found delay not related to crisis.
  • Open VAT assessments will be amended if it appears VAT should be less due to the pandemic.
  • Extra VAT relief on customer bad debts will be granted if related to crisis.
  • Option for businesses with regular VAT credits on quarterly VAT returns to change to monthly returns for better cashflow. 

Businesses may also bring forward 2020 VAT reclaims from other EU member states via 8th Directive claims.

Explore more content like this in our Building for COVID-19 recovery hub

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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