Dutch VAT is called btw (omzetbelasting). Most VAT entrepreneurs charge VAT to customers, deduct eligible VAT paid on business costs, and file returns with Belastingdienst. Do not confuse your public VAT identification number with the number used in communication with Belastingdienst.

BTW-id versus omzetbelastingnummer

The btw-id is the VAT identification number you use with customers and suppliers and, where required, on invoices. The omzetbelastingnummer (ob-nummer) is used in dealings with Belastingdienst. They are not interchangeable.

Your VAT routine

  • Know whether your goods/services are taxed, exempt or subject to a special rule.
  • Use the correct VAT rate rather than assuming 21% always applies.
  • Keep incoming and outgoing invoices.
  • File by the deadline shown by Belastingdienst. Many businesses file quarterly.
  • File a zero return when a return is required even if there was no turnover or input VAT.
  • Keep VAT money separate mentally or financially: VAT collected is not ordinary spendable revenue.

Small business scheme (KOR)

The kleineondernemersregeling can change how VAT works for qualifying small businesses. It is not simply a tax discount. Check current eligibility and consequences with Belastingdienst before opting in, especially if you expect substantial input VAT or cross-border transactions.

Cross-border work

EU business customers, services supplied abroad, imports, exports and online sales can trigger different place-of-supply, reverse-charge or reporting rules. A Dutch KVK registration does not make every invoice a standard Dutch 21% VAT invoice.