VAT is the topic new entrepreneurs ask us about most. That is no surprise. It is mandatory, it comes back every three months, and if you get it wrong, the Tax Administration (Belastingdienst) will be on your case. But it is not rocket science either. Here are the basics.
What is VAT?
VAT stands for value added tax (btw). You add it on top of your invoice (usually 21%, sometimes 9% or 0%), and your client pays it to you. But that money is not yours. You are really just passing it on to the Belastingdienst.
At the end of the quarter you settle up: how much VAT did you receive, and how much VAT did you pay yourself to suppliers and on business costs? You pay the difference to the Belastingdienst. Or you get it back, if you paid more than you received.
The three VAT rates
- 21% (standard rate): applies to most products and services. Software, advice, clothing, electronics.
- 9% (reduced rate): applies to specific categories: food, books, bicycle repairs, hairdressers, food and drink in restaurants and cafés. Note: since 1 January 2026, hotel stays and holiday homes fall under 21%.
- 0% (zero rate): applies mainly to exports outside the EU and supplies to businesses in other EU countries. You can still deduct the VAT on your costs.
On top of that, some services are exempt from VAT, such as certain healthcare and education. That is different from 0%: you do not charge VAT, but you also cannot deduct the VAT on your costs.
Not sure which rate applies to your service? Ask us. That is exactly what Fenna is good at.
Quick VAT question?
Fenna quickly helps you with VAT rates and rules. Ask your question on the right of this page and she answers right away.
When do you file your return?
By default every quarter, so 4 times a year. The deadlines are fixed:
- Q1 (Jan–Mar): by 30 April
- Q2 (Apr–Jun): by 31 July
- Q3 (Jul–Sep): by 31 October
- Q4 (Oct–Dec): by 31 January (the following year)
By that date, both your return and your payment must have reached the Belastingdienst.
Do you only owe very little VAT? Then the Belastingdienst may allow you to file once a year. With large amounts, or if you ask for it yourself, you file monthly instead. But the default is quarterly.
What if you are late?
If you still file within 7 days after the deadline, you do not get a fine. After that, a late return costs a default penalty of € 82, and more if it happens again. Paying late costs 3% of the amount (at least € 50, at most € 6,709). If you do not file at all, the Belastingdienst can estimate the amount and send you an additional assessment (naheffingsaanslag), which is often higher than what you really owe.
Mistake in an earlier return?
Do you find out later that an earlier return was wrong? If it is € 1,000 or less, you include the correction in your next return. If it is more, you file a separate correction (suppletie) within 8 weeks of discovering the mistake. So do not wait until the end of the year.
"The biggest mistake we see? People who spend their VAT money on business costs or on themselves, and find out at the end of the quarter that it is gone. Remember: VAT is money that belongs to the Belastingdienst and is only sitting in your account for a while."
Practical tip: set the VAT aside
We advise our clients to move the VAT to a savings account straight away, every time they send an invoice with VAT. Do you have an invoice of € 1,210 (€ 1,000 + € 210 VAT)? Put that € 210 in a savings account. At the end of the quarter, the money is ready.
Sounds simple, and it is simple. But it saves a lot of stress at the end of the quarter.
How do you file the return yourself?
Through Mijn Belastingdienst Zakelijk. Log in with DigiD (sole proprietorship, eenmanszaak) or eHerkenning (private limited company, BV), fill in the form, send it. If you use good accounting software, such as Moneybird, all the amounts are already there.
Or: let us do it. VAT returns are included in every Boekhoudlive package, from € 50 a month (excl. VAT), and you never have to remember a deadline again. We prepare the return, an accountant checks it, we send it to you for approval, and file it as soon as you agree.
VAT returns included, from € 50/month
With income tax return and e-Boekhouden included, excl. VAT. Starters from € 30/month in year one. No deadlines to remember, no panic at the end of the quarter. We do it, you approve.
Frequently asked questions
Do I always have to charge VAT?
Not always. With the small business scheme (KOR), you are exempt from VAT if your turnover in the Netherlands stays below € 20,000 per calendar year. You then do not charge VAT, but you also cannot reclaim VAT on your costs. You must register at least 4 weeks before the start date; it does not happen automatically.
Is the KOR a good deal for me?
Usually yes, if you mainly sell to consumers and have few costs with VAT. If you mainly work for businesses, the KOR is usually a disadvantage: they can reclaim the VAT anyway, so your client notices no difference, while you can no longer get back the VAT on your costs.
VAT return: how much can I do myself?
For very simple situations (only Dutch clients, only the 21% rate, no imports), doing it yourself works fine. But as soon as you work internationally, juggle different rates, or have EU supplies, it is more likely to go wrong than right. That is when an accountant helps.
What is an "intra-Community supply"?
That is a sale of goods to a business in another EU country. You charge 0% VAT and you also file a statement of intra-Community supplies (opgaaf ICP). If you provide services to an EU business, the VAT is usually reverse-charged: you state that on your invoice, and those services also go in your ICP statement. A common mistake: simply charging 21%. That is not correct.