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Netherlands Company Formation Agents - How they (should) Work!
Are you thinking of starting a business in the Netherlands? One important step is finding a reliable company agent to help with legal and...
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Checklist to apply for a Dutch VAT number for your company
In order to apply for a (resident) Dutch VAT number, the following documents are required:
Passport copy of the director
Proof of residential address of the director (can be overseas)
Proof of registration of the company (in The Netherlands, or overseas)
Completed Application Form (which can be completed and provided by INCO)
As mentioned in our VAT guide, there are two type of VAT numbers in the Netherlands. In order to determine if you are eligible for the VAT number, the tax authorities might request for supporting documents, based on the following questions:
- Does your company has a physical location in The Netherlands?
Does your company have staff members in the Netherlands?
Does your company provides services or goods in the Netherlands?
If you answers one or more questions with YES, then the Tax & Customs Administration might request you to send a proof. Like:
Rental Agreement
Employment agreement
Examples of purchase and sales invoices (even if you performed such services with our overseas company before).
In case you answered these questions with NO, but you still like to apply for a Dutch VAT number, then you should consider the following questions, and possible supporting documents that you need to deliver :
In the Netherlands, do you sell goods to private individuals? Example: You are a foreign entrepreneur and you sell CDs to private individuals at a music fair in Amsterdam.
From the Netherlands, do you sell goods to private individuals from other EU countries? Example: You are a foreign entrepreneur and you send, from a rented warehouse in Rotterdam, clothing to a private individual from Valencia.
In the Netherlands, do you sell goods to other foreign entrepreneurs?Example: As a foreign entrepreneur, you have a rented warehouse in Rotterdam where you sell cheese to an entrepreneur from Hamburg.
From the Netherlands, do you sell goods to entrepreneurs from other EU countries (intra-Community supplies)? Example: As a foreign entrepreneur, you rented a warehouse in Rotterdam, from where you sent a shipment of flower bulbs to an entrepreneur from Glasgow.
Do you bring your own goods from the Netherlands to another EU country?
From the Netherlands, do you sell goods to customers outside the EU?
Do you have intra-Community acquisitions (ICA) in the Netherlands?
Did you receive any invoices with Dutch VAT that has been reverse-charged to you?
Do you have other deliveries in the Netherlands subject to VAT?
Do you charge VAT for services provided in the Netherlands?
In case you answered one or more questions with Yes, you might want to collect supporting documents, such as purchase or sales invoice from/or to Dutch companies, to support your request for the VAT application.
In the tutorial below, we explain which exact form you must complete, how to complete the VAT application form, and finally, to send it to:
Belastingdienst Buitenland
Afdeling klantenregistratie
Postbus 2865
6401 DJ HEERLEN
Nederland
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Which type of VAT number registration is possible for your Dutch company?
When your business operates in The Netherlands, you need to check if your company is required to register for VAT purposes in the Netherlands.
This is not always required! In some cases, you might want to apply for a VAT number, but your company would not be eligible, as described in the checklist above.
In the paragraph, we get into more detail on the two main possibilities to apply for a VAT number in the Netherlands.
There is a difference between so-called resident VAT number, and the non-resident VAT number, as indicated in the checklist above.
This difference applies to all types of businesses, even if they are registered outside the Netherlands.
Any kind of legal entity, even a charitable organisation, or associations (like a sports club) can be required to register for VAT, if it delivers goods or services to the ‘market’.
Dutch sole traders, are considered to be residents, and will automatically receive a VAT number, once they have registered at the Chamber of Commerce.
Dutch Private Companies, like the Dutch B.V., which are incorporated and registered by a Dutch individual director, is also likely to obtain a Dutch VAT number within two weeks after the registration of the company at the Chamber of Commerce (kvk.nl).
In case a (newly incorporated) Dutch company is registered by a non-resident individual, the Dutch Tax & Customs Administration is likely to send a questionnaire first, to determine if (and which type) a VAT number should be issued.
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Check if your company is considered resident for VAT purposes
A resident VAT status can only be applicable for companies which are registered in the Netherlands. Even if your company is incorporated overseas, but has a branch registered in the Netherlands, it can be considered a resident for VAT purposes.
If your company is effectively based in The Netherlands, and operating from a Dutch location, and/or with Dutch staff/board members, then it can be considered that the company must be registered for VAt purposes (as a resident company).
This means that the company will have to charge VAT on it’s (local) sales, unless exemptions apply. Read more about how to charge VAT here.
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Check if your company is considered NON-resident for VAT purposes
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In case you have started a Dutch company, but you have not started any actual business in the Netherlands (yet), then you still might need to register for VAT.
This is typically the case, when you Dutch company deals with Dutch/European suppliers, or buyers, while the Dutch company is still being supervised/managed from overseas (for example, by the head quarter, or by the directors from their country of residence).
The Dutch Tax & Customs Administration have developed an online checklist, where you can verify if you can apply for the non-resident VAT number.
VAT exemption for Small Companies in The Netherlands
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Do you use the small business scheme (KOR)? Then you do not have to file a VAT return. But you can therefore not reclaim VAT.
How does the KOR scheme work for Dutch companies?
The small business scheme (KOR) has been updated the 1th of January 2020. VAT registration is no longer an automatic requirement for resident companies, but it will depend on your turnover. If you have less than 20,000 euros in a year, you can use the KOR.
You will then have to make a request (no later than 20 November) to the Tax Authorities to use the KOR. You no longer need to submit VAT returns. If you use the new KOR, you may no longer state VAT on your invoices (after all, you no longer need to submit VAT returns). However, you may no longer reclaim VAT on your expenses.
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Advantages of the Dutch KOR scheme
Participation in the new KOR reduces your administrative obligations for VAT. You no longer have to send invoices to your customers. You also no longer file a VAT return.
The new KOR will mainly be beneficial for the consumer. Are your customers mainly private individuals and are you sure that you remain below the turnover limit? Then you can of course become a lot more attractive. If you no longer charge VAT, you will become cheaper for them. Or, if you continue to use the same rates, you will earn more yourself.
Disadvantages of the Dutch KOR scheme
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Nobody is eager to do the administration every three months, but the advantage of this is that your accounting is up to date. There is a risk that if you do not keep up with it, all receipts and invoices will be neatly stacked and that this stack will increase throughout the year. This makes it an increasingly bigger step to put this in order for the annual income tax return.
Moreover, if your customers are other companies that are also allowed to settle VAT, it will make little sense. After all, they can still reclaim the VAT that you have charged. With the new KOR you can no longer deduct the VAT on your business costs and investments. Are you going to make a lot of investments next year? Then the new scheme is of little use.
You must therefore make an estimate for the year whether your turnover remains below 20,000 euros and submit a request to the tax authorities on time. Do you make more than 20,000 euros in a calendar year? Then you must calculate VAT from the delivery with which you exceed the 20,000 euro limit. From that moment on, you also have to keep the normal VAT administration. The turnover before exceedance remains free of VAT. You cannot use this scheme for the next three years.
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