The first thing you need to do is to register your company with the Trade Register via the Chamber of Commerce. Your company information will be automatically transferred to the tax authorities.

When registering the BV with the Chamber of Commerce you will receive an RSIN number. This number is also on the extract of the Chamber of Commerce.

What is a Company Registration Number in the Netherlands?
In the Netherlands, companies and partnerships are assigned an RSIN (Rechtspersonen en Samenwerkingsverbanden Informatie Nummer), which serves as a company identification number. This number links the company's data across various government systems. In addition, businesses registered with the Dutch Chamber of Commerce receive a KvK number (Handelsregister number), which is the primary number used for public identification and business transactions.

This RSIN number becomes the fiscal number of the BV. The VAT number is derived from this number, namely with the addition NL and B01 at the end. However, this number must be activated, and we can perform this process for you.

What is the format of a VAT number in the Netherlands?
A Dutch VAT number (btw-nummer) starts with the country code NL, followed by 9 digits, the letter B, and 2 check digits. Example format: NL000099998B57. The 9 digits are not linked to your citizen service number, and the check digits are randomly assigned.

To assess whether the BV is an entrepreneur for VAT, the following matters are taken into account:

A taxable person for VAT is any person who, in the pursuit of economic activity, provides, regularly and independently, for-profit or not, a supply of goods or services, wherever the economic activity is carried on.

The definition includes 4 essential elements:

Everyone:
Natural person, legal person or associations insofar as they carry out economic activities

Economic activity:
All activities of the producer, trader or service provider are envisaged (except for exempt transactions).

Regularly exercised activity:
To be a taxable person, the transactions listed in the Code must be performed by him/her regularly. Only through succession do actions become an activity. The regular occurrence of the actions in the form of an activity is not clearly defined.
Determining whether an action is part of a regular activity or of an accidental nature is assessed on the basis of the facts.

Independent:
The activity must be carried out on an independent basis and not in employment. There should be no bond of subordination to another person.

The criteria the tax office uses for VAT assessment can include:

• The company activities (and it’s risk for potential VAT misuse)
• Where is the company buying their goods?
• Where is the company selling their goods?
• Does the company have any activities in the Netherlands?
• Does the company have any staff, directors or operations in the Netherlands?
• Where is the company marketing itself?

If the BV meets the tax inspector assessment, there is a tax liability for VAT, and the Tax and Customs Administration will issue a VAT number. This international VAT number is crucial for international transactions with other legal entities within the EU since a valid number leads to an invoice without VAT. (a so-called intra-community transaction). It is also important to always check the validity of the VAT number of your counterparty since the normal VAT rate applies if the number is invalid. The validity of any EU VAT number, including Dutch numbers, can be checked via the official Vies VAT number validation website. This is essential for intra-community trade, as using an invalid number may result in incorrect VAT treatment.

Where to use the VAT number?

A Dutch VAT number must be clearly stated on all invoices issued by the business. This is a legal requirement under Dutch VAT law and is essential for both domestic and cross-border (intra-community) transactions within the EU. Without a valid VAT number on the invoice, clients may be unable to reclaim VAT or apply the 0% rate for intra-community supplies. They must also file VAT reports with the local tax office. All invoices are required to include certain information about the VAT, such as:

The VAT number of the client;
The VAT ID number of the seller;
Information about the items/services sold;
The amount of VAT (net);
The VAT rate;
The amount of VAT charged;
The total amount including VAT.

For example, a VAT number may appear on an invoice like this:
BTW-nummer verkoper: NL123456789B01

Make sure the VAT number appears near the company details or invoice header so it is easily identifiable during VAT audits or verification.

VAT registration for foreign companies (non-established businesses)

Foreign companies without a permanent establishment in the Netherlands can still apply for a Dutch VAT number. This is done via a separate registration process with the Dutch Tax and Customs Administration. These companies are classified as “non-established taxable persons” and can register directly by submitting form 'Opgaaf Startende Onderneming (for foreign companies)'. No registration with the Chamber of Commerce is required in this case.

In conclusion

The whole process of applying for a VAT number can be completed within 5 working days. Our accounting and VAT specialists file- and consult hundreds of such VAT requests per year. Our specialists ensure the best possible service to represent your company with the tax authorities.

You should also be aware that if your company is dissolved, you must also contact the tax authorities as the VAT number must be deleted and the company will be de-registered.

FAQ's

What does a Dutch VAT number look like?

A Dutch VAT number consists of 9 digits, followed by the letter 'B', and then 2 digits. For example: 123456789B01.

How do I apply for a Dutch VAT number?

To apply for a Dutch VAT number, you must register your business with the Netherlands Chamber of Commerce (KVK). After registration, the KVK will forward your details to the Dutch Tax Administration (Belastingdienst), which will assess your VAT status and issue a VAT number if applicable.

Do foreign companies need a Dutch VAT number?

Yes, foreign companies may need a Dutch VAT number if they conduct business activities in the Netherlands that are subject to Dutch VAT. This includes activities such as importing goods, providing services to Dutch customers, or having a permanent establishment in the Netherlands.

Is a VAT number the same as a Chamber of Commerce number?

No, a VAT number and a Chamber of Commerce (KVK) number are different. The KVK number is your business registration number issued by the Netherlands Chamber of Commerce, confirming your business is officially registered. The VAT number is issued by the Dutch Tax Administration and is used for tax purposes.

Would you like to start a business as an expat? The Netherlands is an ideal place for entrepreneurs. There are numerous market opportunities and a healthy economy with plenty of potential investors open to new ideas.

However, the Netherlands is also known for the a number of administrative procedures that you have to consider when starting your own company. To set up a business in the Netherlands, for example, one of the first things you need to decide is if you want to register and operate the company remotely. Or if you want to work and reside in the country.

If you are from a country not from the EU, EEA, Visa free travel country, you might need to apply for a business visa to come by. For long term residency you might need to apply for an Authorization for Provisional Residence, and possibly even a work permit or TWV. When completing the application, keep in mind that your proposed business must benefit the Netherlands in some way.

Legal forms

The next step is to decide which legal form is right for your company. It is essential to choose a structure with the appropriate legal form as this determines liability for tax purposes. ICS can help you with this process. Generally foreign entrepreneurs are best suited to start a Dutch BV company.

BV or Sole Trader (eenmanszaak)

Freelancers living in the Netherlands, often choose the sole trader structure. However, the most frequent option for professional small and middle sized businesses is a the BV, which is a limited liability company. The advantages of the Dutch BV for foreign entrepreneurs are:

• You can open a BV remotely with our services
• You can operate a BV from anywhere in the world
• You can request a bank account remotely with our services
• It is a very common structure for foreign entrepreneurs in the Netherlands
• You do not need an address in the Netherlands
• You do not have to be a resident to open the BV
• You do not need a residence permit or visa
• You do not have a minimum requirement of time you need to spend in the Netherlands
• You can open it before you live in the Netherlands (and run it remotely)

For the Sole Trader (Eenmanszaak)

• You need to live in the Netherlands
• You cannot run it completely remotely, as you are required to stay in the Netherlands more than 50% of the year
• You need to have a Dutch fiscal identification number and Dutch residence address
• You cannot open it before you live in the Netherlands

Registering your company at the Chamber of Commerce

Once you have decided the kind of business you wish to set up, the next thing you need to do is to register the company with the Chamber of Commerce, which is mandatory. Registration must occur from one week before the start of business to one week after work has commenced.
Very soon after your business is registered with the Chamber of Commerce, you will be issued with a unique company number or the Chamber of Commerce number. It is a statutory requirement to include this number on all company invoices and mail.

Dutch Corporate Tax

As well as registering with the Chamber of Commerce, your fledgling business must additionally be registered with the Tax Authorities. We recommend registering as soon as you can in order to claim a VAT deduction. ICS is specialized in tax registration for foreign business owners.

What about Dutch VAT?

When customers are invoiced for your services or when they pay you for your products, you will need to add an extra 21% VAT tax to your rate.
The VAT return must be calculated every quarter and paid directly to the tax authorities. However, VAT may be deducted from VAT spent. VAT is not a cost for the entrepreneur, it is only a cost for the end consumer.

Vat is not the only tax.
Entrepreneurs in the Netherlands will at least encounter some of the following taxes.

• Corporate tax, this tax is paid upon the company profit after all company costs.
• Income tax, this is tax on salary that an individual pays when receiving income. Income tax includes tax on dividends, wages and bonuses.
• Payroll tax, this is the tax that company owners pay on top of the salary to the government.

Why does the Netherlands have Payroll tax?
With the payroll tax, costs such as health insurance and unemployment benefits for every resident is covered. Every tax paying resident of the Netherlands has the right to these benefits.

Business Administration

In the Netherlands, businesses must keep business records. Every business owner is legally obliged to keep them for at least 7 years. If you close your company, your accountant or bookkeeper is required to hold the documents for you. The bookkeeper will be legally appointed as the custodian for your records.

The business Administration includes:

• Contracts and agreements
• Costs of business activities
• Invoices sent and received
• Your balances and bank statements
• Annual accounts
• VAT and tax filings

Dormant company accounting

The Netherlands does not have a type of dormant company. If your firm is inactive (little or no invoices), you can request your accountant for the VAT filings and Payroll tax to be halted. However, you are still legally required to file the end-of-year corporate tax filing, the board to sign off on the numbers in an official declaration and depositing of the annual statement in the Chamber of Commerce. ICS does offer special accounting prices for firms with no activities. Please ask one of our accounting specialists for more information.

Insurance and pensions

As an entrepreneur, you are prepared to take risks and you may have plenty of responsibilities.
It is advisable to take out insurance to protect you against risks and to guarantee an income if you are unable to work in the future.

In the Netherlands, entrepreneurs are liable for personal injury and material damage that you, your employees or your product cause on your behalf. Business liability insurance is, therefore in some more risky type of business categories (construction and so on), essential to reimburse the damage that your company may cause to others. Another frequently used insurance is disability insurance which assures you of an income if you are unable to work because of ill-health.

Health insurance is mandatory for everyone in the Netherlands. As an entrepreneur, your contributions are based on your taxable income. Legal assistance insurance is also recommended as conflicts may occur, whether with clients, employees or suppliers. This type of insurance guarantees help and advice on legal issues.