Guide
VAT rates in the Netherlands: 21%, 9% and 0%
The Netherlands has three VAT rates. Learn which rate you charge and how to show it on your invoice.
General information. This guide contains general information and is not tax or legal advice. Your situation may differ. If in doubt, consult the Dutch Tax Administration, the Chamber of Commerce (KVK) or an adviser.
The three rates
The Netherlands has three VAT rates. The standard rate of 21% applies to all goods and services that are not exempt and do not fall under the 9% or 0% rate. A defined group of goods and services has the reduced rate of 9%. The zero rate of 0% applies to, among other things, trade with other countries.
What falls under 9%?
The reduced rate only applies to goods and services that the Tax Administration designates. It mentions, for example:
- Goods: food, water, medicines and medical aids, books and periodicals, and art, collectors’ items and antiques.
- Services: repairing bicycles, shoes and leather goods and clothing, hairdressers’ services, providing camping facilities, admission to cultural and recreational events, performances by performing artists, passenger transport and certain work on dwellings.
- Selling food in hospitality falls under 9%, because it is closely linked to 9% goods.
What falls under 0%?
At the zero rate you charge no VAT, but you can still deduct the VAT on your costs. The rate is meant to keep, among other things, trade with other countries outside the scope of VAT.
An exemption is not the same as 0%. If you take part in the small business scheme, for example, you charge no VAT but you also cannot deduct VAT.
Not sure which rate applies?
The classification depends on the product or service, not on the name of your business. In doubtful cases, check the Tax Administration pages ‘Goederen met 9% btw’ and ‘Diensten met 9% btw’ (goods and services with 9% VAT). The lists can change, so always use the current text.
How do you show the rates on your invoice?
According to the Tax Administration, an invoice shows, among other things, the amount excluding VAT, the VAT rate that applies and the VAT amount. If you use several rates on one invoice, it is clear to show the amount excluding VAT and the VAT amount per rate.
You can read more about all mandatory details in our guide on invoice requirements.
How FactuurPro helps
In FactuurPro you choose the rate per invoice line: 21%, 9% or 0%, plus reverse charge or exempt. The VAT breakdown on the invoice is built automatically. With the VAT calculator you can quickly convert an amount to or from VAT-inclusive.