VAT Returns & Recovery in The Netherlands
In the Netherlands, VAT returns are typically filed on a quarterly basis. However, monthly or annual submissions may be required or instructed by the Dutch Tax Authorities in certain situations.
The deadline for submitting VAT returns is before the last working day of the month following the end of the reporting period.
Read more about VAT recovery and VAT returns in the Netherlands in our comprehensive guide.
VAT Returns in The Netherlands
Electronic filing
In the Netherlands, the electronic submission of VAT returns through the tax authorities’ filing website is mandatory for all taxable persons, whether they are filing from within the Netherlands or from abroad. Paper submissions are an exception and are only used when specifically requested by the tax authorities. Payments can be made through various methods, including bank transfer, giro, or cash at government agencies like post offices. Tax records must be kept for a period of seven years.
There are specific record-keeping requirements for online marketplaces and distance sellers, which are stipulated by the EU E-commerce package effective from July 1st onwards.
Selling in The Netherlands?
VAT Recovery in The Netherlands
The Dutch VAT Act specifies that the VAT a taxable person pays on supplies received, intra-Community acquisitions, and import VAT for goods brought into the Netherlands (collectively referred to as “input VAT”) can be deducted from the total VAT owed for that period. The net VAT payable, or receivable as a refund, by the taxable person for each tax period is calculated by subtracting the input VAT from the VAT charged on supplies made.
To qualify for input tax credit, certain criteria must be fulfilled:
- There must be proper invoices and receipts for all transactions, serving as evidence of the transactions and to determine the amounts.
- The individual making the claim must be a taxable person, whether they are the recipient of the supply or the goods.
- The VAT must be associated with the taxable supplies made by the claimant, including those that are zero-rated.
- All supplies on which VAT is reclaimed must be for business purposes related to the claimant’s activities.
Restrictions on Deductibility
Generally, VAT cannot be deducted if it was paid on goods or services intended for non-business use or for VAT-exempt supplies. Nevertheless, there are certain exceptions. For instance, VAT on expenses related to VAT-exempt supplies made to customers outside the EU may be deductible.
Specifically, VAT costs for meals and drinks at restaurants, bars, and similar establishments are not reclaimable. As outlined in Article 16 of the VAT Act, VAT cannot be reclaimed on goods or services used for:
- Compensation to employees in the form of goods or services.
- Purchases of luxury items intended for personal prestige.
- Items given away as promotional gifts to individuals who are not eligible to reclaim VAT.
Typically, a VAT refund should be claimed within the period that the invoice being claimed for was issued. If a VAT refund is not claimed within the relevant period, the taxpayer must submit a supplementary VAT return to amend the original tax return for that period. This supplementary VAT return must also be filed electronically.
Last Updated: 10/11/2023
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
