If you're not from the Netherlands and want to do business there, you'll need a Dutch VAT number. This number is essential for non-residents who want to buy or sell goods and services in the country or take part in economic activities. We'll show you how to get a Dutch VAT number as a non-resident in this article, so you can start doing business in the Netherlands.
What is VAT
Value Added Tax (VAT) is a tax added to the price of goods or services at every stage of production and distribution.
In the Netherlands, businesses registered to pay VAT get a VAT number.
For residents, the VAT number is for domestic sales and services. Non-residents get a separate VAT number for foreign transactions.
Non-resident businesses applying for a VAT number in the Netherlands must appoint a fiscal representative based there.
They also need to show they are making taxable supplies, importing goods, or involved in intra-community acquisitions.
Meeting these requirements is necessary for non-residents to get a VAT number in the Netherlands.
Why Non-Resident Businesses Need a Dutch VAT Number
Non-resident businesses operating in the Netherlands need a Dutch VAT number for several reasons. Unlike resident businesses, non-resident businesses are required to obtain a Dutch VAT number to comply with Dutch VAT laws. There are eligibility criteria for non-resident businesses to apply for a Dutch VAT number, such as having a business establishment or taxable turnover in the Netherlands. The process involves submitting documentation to the Dutch tax authorities and waiting for approval.
Once approved, non-resident businesses can issue invoices with the VAT number, necessary for conducting business in the Netherlands. Therefore, it is important for non-resident businesses to obtain a Dutch VAT number to legally operate and comply with VAT regulations in the Netherlands.
Understanding VAT Number for Non-Residents in Netherlands
Differences Between Resident and Non-Resident VAT Numbers
Resident and non-resident VAT numbers in the Netherlands have different rules for eligibility and taxes.
Resident businesses follow a specific format for their VAT number, including the country code and digits.
Non-resident businesses have a simpler VAT number without the country code. To get a VAT number, non-resident businesses need to show evidence of their business activities in the Netherlands and submit the required documents to the Dutch Tax and Customs Administration.
Non-resident businesses may also need to appoint a fiscal representative to manage their VAT obligations in the Netherlands, while resident businesses can usually handle their VAT without a representative.
These differences show that there are specific rules for businesses operating within and outside the country.
Format of Dutch VAT Number
A Dutch VAT number has 14 characters in total. It starts with the country code (NL), then has a 10-digit number, and ends with the letter "B". The numerical part may have leading or trailing zeroes. Each unique number includes both numbers and letters, making it distinct from VAT numbers in other countries. For instance, a Dutch VAT number could be NL123456789B01. This consistent format helps non-residents recognize Dutch VAT numbers when doing business in the Netherlands.
Role of VAT in E-commerce and Digital Services
VAT is important for e-commerce and digital services. It ensures fair taxation for businesses and consumers.
Non-resident businesses in this sector must register for VAT in the countries they operate, such as the Netherlands. They also need to follow VAT filing requirements and invoicing rules.
To operate in the Netherlands, non-resident businesses must consider the threshold for mandatory registration, tax invoicing rules, and stay updated on any changes in VAT rates or regulations.
Following these requirements is necessary to avoid penalties and maintain a good standing with Dutch tax authorities.
Eligibility for Applying for a VAT Number in Netherlands
EU Businesses vs Non-EU Businesses
EU businesses and non-EU businesses have different VAT requirements in the Netherlands.
EU businesses can use their EU VAT number for intra-community supplies within the EU, making the process easier.
Non-EU businesses need a separate VAT number in the Netherlands to do business there.
When storing goods, EU businesses can do so in the Netherlands up to a certain threshold before needing to register for VAT.
Non-EU businesses must register for VAT upon first storing goods in the Netherlands, regardless of value thresholds.
Non-resident businesses in the Netherlands can access services like VAT consultation and representation for tax affairs to help with Dutch taxation laws.
These services support non-EU businesses in complying with VAT requirements and running business smoothly in the country.
Supply of Goods and Services Threshold Limits
In the Netherlands, resident businesses need to register for VAT if their annual turnover exceeds €100,000. Non-resident businesses must register if their annual turnover surpasses €10,000.
For the storage of goods, if a business stores goods in the Netherlands with the intention to sell them later, the threshold limits apply to those stored goods.
Both resident and non-resident businesses should be aware of these thresholds for compliance with VAT regulations in the Netherlands.
Special Considerations for Storage of Goods
When storing goods in a business, it's important to consider VAT regulations. For non-resident businesses in the Netherlands, VAT has a big impact on goods storage. To store goods there, non-resident businesses must get a VAT number in the Netherlands. Specific regulations and requirements apply to storing goods like alcohol, tobacco, and electronics in relation to VAT. These rules ensure the right amount of VAT is applied and that goods are stored lawfully.
Not complying with these regulationscan lead to penalties and fines for non-resident businesses. Understanding and following the VAT regulations for goods storage in the Netherlands is crucial for non-resident businesses.
Steps to Register for a Dutch VAT Number
Gather Necessary Information
Non-resident businesses applying for a VAT number in the Netherlands need to provide company details, contact information, and details about their business activities. They also need to submit documents like a certificate of incorporation, articles of association, and proof of identification for company representatives.
EU businesses usually need to provide a valid VAT number from their home country and may have to fill out additional forms. Non-EU businesses often need to appoint a fiscal representative in the Netherlands and provide more documentation.
Understanding these requirements and process differences is important for a successful application.
Submit the Registration Form
To register for a Dutch VAT number, you'll need to provide:
The legal name and address of the business.
The type of business activity.
Bank account information for VAT refunds.
The process involves:
Completing the form online.
Providing any necessary supporting documentation.
Ensuring accuracy and updating all information.
Non-resident businesses should carefully review their country's specific requirements. For instance, a German business seeking a Dutch VAT number may need to show proof of their existing VAT registration. It's important to be aware of these differences to successfully register for a Dutch VAT number.
Await Confirmation from Dutch Tax Authorities
Once you submit an application for a VAT number to the Dutch Tax Authorities, you'll start waiting for confirmation. Non-residents need to provide specific information such as proof of identification, business registration documents, and details of their activities in the Netherlands.
The Dutch Tax Authorities will review the application and may ask for more documents if needed. The time to get confirmation varies based on the completeness of the application and the workload of the tax authorities. It usually takes a few weeks to a couple of months.
Make sure to accurately submit all required information to avoid delays in getting confirmation.
VAT Number for Non-Residents in Netherlands: Filing and Returns
Prepare to File Your VAT Return
When preparing to file a VAT return in the Netherlands as a non-resident business, it's important to have key information ready. This includes the business's VAT number, a detailed record of all sales and purchases, and any relevant import and export documentation.
Understanding the filing frequency and deadlines for VAT returns in the Netherlands is crucial. Non-resident businesses can stay informed by consulting the Dutch tax authorities' guidelines. These guidelines provide clear instructions on the filing frequency and deadlines based on the business's specific circumstances.
When looking to claim a VAT refund as a non-resident business in the Netherlands, the process typically involves submitting the necessary paperwork and supporting documentation, such as invoices and proof of taxes paid. It's important to carefully follow the outlined steps to ensure a smooth and successful VAT refund process.
Understand Filing Frequency and Deadlines
Non-resident businesses in the Netherlands have to know when to file their VAT returns. The frequency depends on their transactions and VAT amount. Usually, non-resident businesses must file VAT returns monthly or quarterly. It's important to understand the specific filing frequency to avoid penalties. They can comply by staying updated, getting advice from tax advisors, and using online resources. Not meeting the deadlines can lead to financial penalties and interest charges.
So it's importantfor non-resident businesses to stick to the filing frequency and deadlines to avoid these consequences.
Learn How to Claim VAT Refund
Non-resident businesses looking to claim a VAT refund in the Netherlands must first register for a Dutch VAT number.
The process involves completing an application form and submitting required documentation to the Dutch tax authorities.
Once registered, non-resident businesses can then proceed to learn about the specific requirements and procedures for claiming a VAT refund.
It's important to note that eligibility requirements for VAT number registration in the Netherlands may vary based on the nature of the business and the types of transactions conducted.
Generally, non-resident businesses must have a valid reason for claiming a VAT refund and provide evidence to support their refund request.
This may include invoices, receipts, and other relevant documentation to validate their transactions and VAT payments within the country.
Understanding the steps and eligibility requirements is crucial for non-resident businesses seeking to claim a VAT refund in the Netherlands.
Additional Services for Non-Resident Businesses in Netherlands
Antonia Klatt and VAT Consultation Services
Non-resident businesses in the Netherlands can apply for a VAT number if they do taxable activities there. To get a Dutch VAT number, they need to fill out an application form, give required documents, and follow local tax laws. Antonia Klatt and VAT Consultation Services help non-resident businesses in the Netherlands with their taxes. They guide them on VAT registration, help with paperwork, and support them in meeting Dutch VAT rules.
This includes things like understanding VAT regulations, doing tax filings correctly and on time, and communicating with Dutch tax authorities.
Purchasing Agent Services and VAT
VAT is very important in e-commerce and digital services. It affects businesses that sell goods or services to customers in the Netherlands.
Non-resident businesses need a VAT number in the Netherlands to follow local tax laws. They must operate in the Netherlands or do taxable transactions there to be eligible.
This includes selling goods to Dutch customers, keeping stock in the Netherlands, or providing digital services. After getting a VAT number, non-resident businesses can file for VAT returns with the Dutch tax authorities.
Not following VAT regulations can lead to penalties and legal consequences. It's very important for businesses to understand and follow VAT requirements in the Netherlands.
Representation for Non-Resident Business and Tax Affairs
Obtaining a Dutch VAT number is crucial for non-resident businesses operating in the Netherlands, as it enables them to legally conduct business activities and comply with local tax regulations. The VAT number allows businesses to charge and collect VAT on goods and services provided within the country, as well as to claim input VAT on their company expenses.
There are notable differences between resident and non-resident VAT numbers in the Netherlands. Non-resident businesses are required to register for a VAT number through a special online portal, while resident businesses can do so through the Dutch Tax and Customs Administration.
Additionally, non-resident businesses must appoint a tax representative in the Netherlands, who will be responsible for their VAT obligations.
The process of registering for a Dutch VAT number as a non-resident business involves several steps. These include gathering the necessary documentation, such as proof of business incorporation and identification documents, completing the online registration form, and appointing a tax representative. Once the registration is submitted, the Dutch Tax and Customs Administration will review the application and issue a VAT number if all requirements are met.
Non-residents can get a Dutch VAT number in two ways: by appointing a fiscal representative or registering directly with the Dutch tax authorities. This involves giving the required documents and information, and possibly a bank guarantee. Understanding these requirements and implications is vital for complying with Dutch tax laws as a non-resident.