How BTW works in Netherlands
In the Netherlands, VAT โ known locally as BTW (Belasting Toegevoegde Waarde) โ is charged at a standard rate of 21% and a reduced rate of 9% for food, books, and medicines. The Dutch tax authority (Belastingdienst) handles registration and quarterly filings.
BTW rates
| Type | Rate | Applies to |
|---|---|---|
| standard | 21% | Most goods and services |
| reduced | 9% | Food, books, medicines |
| zero | 0% | Intra-EU exports |
Do I need to register for BTW in Netherlands?
Registration threshold: โฌ20,000 annual taxable turnover.
Register with the Chamber of Commerce (Kamer van Koophandel, KvK) and you'll receive a BTW number automatically. The small businesses scheme (Kleineondernemersregeling, KOR) lets businesses below โฌ20,000 turnover opt out of charging BTW.
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Common mistakes
- Forgetting to apply the small businesses scheme (KOR) when eligible
- Wrong BTW rate on hospitality (9% vs 21%)
- Missing the quarterly BTW return (BTW-aangifte) deadline
FAQs
What is the Dutch BTW (VAT) rate?โ
Standard 21%, reduced 9% on food, books and medicines.