ENTREPRENEURSHIP

VAT (turnover tax)

Table of contents

If you operate as an entrepreneur, you pay turnover tax (VAT). What rates apply and when do you have to file a tax return in the Netherlands? Read more here.

Are you liable for VAT?

'Non-exempt professionals' are subject to VAT. These entrepreneurs have to charge VAT on the goods they supply or the services they provide. The advantage is that the VAT they pay themselves on business purchases is deductible from turnover. Under conditions, work is exempt from VAT. If you are liable for VAT, you will have to keep records and submit periodic turnover tax returns.

VAT rates in the Netherlands

VAT has different rates in the Netherlands. The general rate is 21%. For some goods and services, the reduced rate of 9% applies. If you do business with foreign countries, the 0% rate may apply.

Dutch small businesses scheme (KOR)

The small business scheme (KOR) is an exemption for small businesses for VAT. You do not then have to file a VAT return. You can use the KOR if you are established in the Netherlands and have no more than €20,000 turnover in 1 calendar year. The KOR is there not only for natural persons (sole traders), combinations of natural persons (e.g. a GP) but also for legal persons (e.g. foundations, associations and LLC).

Questions on VAT (turnover tax)

Do you have a turnover ax question or want to know more about turnover tax returns? We are happy to be of service. We can help you keep your records and prepare your turnover tax return.