VAT Registration in the Netherlands
In the Netherlands, businesses that provide taxable goods or services are generally required to register for value-added tax (VAT) with the Dutch Tax and Customs Administration.
The Netherlands does not have a voluntary registration scheme because the Value Added Tax (VAT) system in the country operates under a mandatory registration regime. This means that businesses that meet certain turnover thresholds are required to register for VAT and collect and remit the tax to the government.
Read below all about VAT registration in The Netherlands in our comprehensive guide.
Register for VAT in the Netherlands
The definition of a taxable person is quite extensive, which means that any individual or organization that has initiated a business is considered a taxable person. Even if the taxable person has not yet carried out any VAT taxable activities, the preliminary business operations of the entrepreneur can still lead to a deduction of input VAT. The natural person or legal entity is entitled to deduct the input VAT associated with its taxable activities, and this right extends to the point of its liquidation.
Unlike some other countries, the Netherlands does not have a registration threshold that exempts businesses from VAT registration. This means that any taxable person with a presence or permanent establishment in the Netherlands is generally required to register for VAT, regardless of their annual turnover.
However, the Dutch government does offer the Small Enterprise Scheme as an option for eligible businesses. Under this scheme, taxable persons established or with a permanent establishment in the Netherlands can choose not to charge VAT to their customers. In return, they are not able to deduct VAT on their purchases.
Selling in The Netherlands?
Group Registration & OSS in The Netherlands
Group and Divisional Registration
Taxable persons who are established in the Netherlands have the option to create a fiscal unity, which is a VAT group, for VAT purposes. However, forming a VAT group is optional under the Dutch VAT Act. This means that businesses are not required to form a VAT group, and they can continue to operate as separate taxable persons if they choose to do so.
Registration Procedure
To register for VAT in the Netherlands, businesses must complete an online registration form and provide certain information, such as their legal entity type, trade name, address, and turnover. They may also need to provide additional documentation, such as proof of identity and/or a certificate of incorporation.
Once a business is registered for VAT, they are assigned a VAT identification number and are required to charge VAT on their taxable goods or services. They must also submit regular VAT returns and pay any VAT due to the Dutch Tax and Customs Administration.
Additionally, businesses that are established outside the Netherlands may be required to register for VAT in the Netherlands if they provide taxable goods or services to Dutch customers.
Distance Sales
Distance selling, also known as remote selling, refers to the sale of goods or services to customers who are in a different country or region than the seller. In the Netherlands, distance selling is subject to value-added tax (VAT) regulations.
If a company is based in the Netherlands and sells goods or services to customers in other EU countries, it must register for VAT in each country where it makes sales. The VAT rate applied will depend on the country where the customer is located. On the other hand, if a company is based outside the EU and sells goods or services to customers in the Netherlands, it must register for VAT in the Netherlands if it exceeds the distance selling threshold.
However, under the new rules, (July 1, 2021) companies based outside the EU will have to register for VAT in the Netherlands if they sell goods to Dutch customers, regardless of the value of the goods.
OSS Registration
As of July 1, 2021, suppliers providing certain types of goods and services to EU Member States can benefit from a simplified registration process under the EU One Stop Shop (OSS). This system enables suppliers to register in just one EU Member State and cover all eligible supplies throughout the EU. This OSS registration supersedes the Mini One Stop Shop (MOSS) scheme, which was in effect from January 1, 2015, until June 30, 2021.
GVC can register your company for the OSS and offer you an End-to-End solution for your VAT compliance needs. Contact Global VAT Compliance to receive a first assessment for your business for free.
Last Updated: 09/11/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
