pay dutch vat

As a reference for native English speakers, BTW is the Dutch acronym for VAT. For supply of goods to customers (entrepreneurs) in other EU member states (so-called intra-community supply) you are entitled to apply the 0%-rate if you meet certain requirements, such as that the recipient must be a VAT-paying business. Rates: 21%, 9% or 0% In the Netherlands, the standard VAT rate is 21%. Dutch words for vat include vat, bak, kuip, ton, teil, mengen and in een vat doen. It is possible that your company performs both taxable and exempt transactions. When you start up a business in the Netherlands or if you intend to supply goods or services to Dutch customers you will be confronted with the Dutch system of Value Added Tax ("VAT" in Dutch "BTW"). This page is for reference purposes only. VAT as incorporated in Dutch tax law is based on EU Directives. In essence, a lease can be treated as either a delivery of goods or a rendering of services. For the purpose of the EU directive, digital services include the electronic transmission of software, games and information in a broad sense, as well as the subscription to radio and television channels, pay per view and other services supplied online via (international) databases and networks. As an EU citizen, you are entitled to set up your business in any EU country. Foreign entrepreneurs who have no taxable presence for VAT purposes in the Netherlands are eligible for a refund of the Dutch VAT they have incurred. The same can apply if you do not have a business in the Netherlands but you are supplying goods or services to Dutch customers. Within 6 months after the calendar year in which the VAT has been incurred the foreign entrepreneur must file a request for a refund. The request can be filed once per quarter, once per half year or once per year. "The new system also addresses the problem of overseas sellers failing to pay the right amount of VAT on sales of goods already in the … It should be noted that for a number of commodities, deferment is compulsory. The balance is either to be paid to the tax authorities or to be refunded to you by the tax authorities . In brief the system for imports and exports and intra-community supplies works as follows. The moves follow changes in VAT rules brought in by HM Revenue and Customs on 1 January. In general, the VAT must be included on the invoice issued by the supplier of goods or services. If you are interested in our services, please feel free to contact us via e-mail or to call us at our office in Rotterdam at the number +31 (10) 2010466 or our office in Amsterdam at the number + 31 (20) 5709440, Clarifying the VAT implications of (cross border) leases, Dealing with registration and compliance matters, The VAT identification number of your customer (if required by the nature of the supply), Your full name and address as well as the full name and address of your customer, A description of the goods and services supplied (second hand goods are to be identified), The quantity of the goods supplied or services rendered, The date the goods were supplied or the services were rendered, The net amount subject to VAT, the applicable VAT rate and the amount of VAT due, Identification of exempt supplies or supplies where the customer has to pay the VAT (self assessment or "verleggingsregeling"), Identification of tax representatives if used. If you supply goods or services in the Netherlands to a Dutch company or legal entity with its registered office in the Netherlands, you are in principle required to pay Dutch VAT. However, this is often reverse-charged to … These documents must show the amounts of VAT you have paid. Furthermore, your customer, being the recipient of an incorrect invoice, may experience difficulties reclaiming VAT on the incorrect invoices it received. When you purchase goods from outside the EU (i.e. Therefore you only pay the Dutch VAT if you supply a service in the Netherlands and if … If you are active in one of these lines of business, in general you are not allowed to charge VAT on your invoices and in addition VAT you have paid on your invoices is not refundable. In essence, the VAT system should be tax neutral for businesses which are fully subject to the VAT. A 21% Dutch BTW rate, also called the high or general tariff, applies to all other VAT taxable activities; Some goods or services are exempt from BTW (0%), such as international activities. Any non-resident trader supplying goods in the Netherlands may face the obligation to Dutch VAT register , comply with the local laws, complete Dutch returns , Intrastat and other declarations. If you start a business in the Netherlands you are required to register for VAT purposes. Invoicing requirements are incorporated in Dutch tax law which are based on an EU directive. VAT, Value Added Tax (Belasting Toegevoegde Waarde, BTW in Dutch), is a tax that is levied on the value added by an entrepreneur to a product or service. All EU member states must adhere to the Directive, and the standard VAT rate must be 15% or higher. Find more Dutch words at wordhippo.com! There is extensive policy about the qualification of leases and special rules can apply to certain specific situations. You supply a service if you are paid for a service that is not the supply of goods. This includes the obligation to put your customer’s VAT number on the invoice and provide additional information identifying the VAT liability of certain goods/services. Here are the main tax types that you will most likely encounter in the Netherlands: VAT stands for “ The Dutch standard VAT rate is 21% and applies to most goods and services. A 0% rate applies to exports (i.e. In this request the original invoices should be provided. A number of transactions - mainly in the financial (banking/insurances) and real estate sector but also various medical services and certain types of education - are tax exempt. How does the Dutch VAT system work? Therefore you only pay the Dutch VAT if you supply a service in the Netherlands and if the VAT cannot be reverse-charged to your client. The importer then applies for a Dutch Article 23 License which enables the VAT to be recorded, without a cash payment, through the VAT return in the month of import. Dutch VAT rates are based on the European Union's VAT Directive. The Dutch rate is average in comparison to other EU member states (see under the rate in other EU - member states). Get in touch with us today. Including VAT (Value Added Tax) rates for Spain, France, Belgium, South Korea, Japan, Pakistan, Singapore and more. The VAT is often reverse-charged to the person receiving the service. Various criteria must be met for the qualification of a lease as finance lease. to non-EU countries) and intra-community (EU) supplies (see below). You must activate Javascript in order to view this website. As you work to register your businesses in the Netherlands, it is useful to know which tax office applies to you and how you c… It is furthermore noted that records are to be kept of copies of invoices for a period of at least seven years. the 2019 Dutch … import), these goods are subject to VAT at the moment the goods are imported in the Netherlands (or any other EU country). If according to certain criteria the lease qualifies as a finance lease, the lease will  be considered a delivery of goods for Dutch VAT purposes. Not all VAT is refundable. If you are based in the Netherlands and you do business in other countries, the 0% VAT rate may apply. Member states are however free to determine some aspects of the regime such as their domestic rates and turnover limits for registration. This means that the principles and the structure of the VAT regime are in general the same throughout the whole EU. Dutch VAT rates The Dutch standard VAT rate is 21% and applies to most goods and services. export) are in general not subject to VAT. The Dutch supplier may only do this, however, if you give him your German VAT identification number (see section 3.2.1). the country of destination. VAT tax returns have to be filed with the tax authorities on a monthly or quarterly basis, depending on the size of your business. If that is the case then usually you will be required to pay VAT in the Netherlands. Javascript is disabled in this web browser. This means that in general every invoice issued by a business - irrespective at what step in the supply chain - should include VAT and every invoice a business receives includes VAT as well. With regard to the import of certain goods import duting may also become due. It is relevant for your business to comply with the invoicing requirements in order to prevent penalties. Whether you're a Dutch citizen or an expat, you are required to pay taxes if you earn money while living in the Netherlands. For example, if you: Whether you will be required to pay VAT relating to these services depends on the question whether you supply the service in the Netherlands. Jeroom Remmers is the director of the TAPP Coalition. Sometimes, it is a combination of … NB If you pay for the goods in … The normal limitations apply. In that case, VAT may become a cost for your business. In particular for intra-community delivery of goods extensive reporting requirements exist. The Directive, and is based on an EU Directive can apply to evidence to ultimately... A business in the e-commerce business, special VAT rules may be applicable VAT... On EU Directives be treated as either a delivery of goods or services furthermore noted that for period! Enclose original invoices should be charged throughout every stage of the asset standard rule if a company! 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