Mandatory VAT Registration in the Netherlands
Every Dutch company is required to subscribe at the Trade Registry of the Chamber of Commerce. This is a necessary prerequisite for VAT registration and fulfillment of other financial duties. The procedure is mandatory for all types of legal entities, including private limited companies, companies with limited liability, foundations and associations. Registration at the Chamber of Commerce is also mandatory for partnerships (e.g. general partnerships) and sole proprietors. The procedure for subscription at the Trade Registry involves the payment of a registration fee amounting to 50 Euros.
After the completion of the registration process, the Chamber of Commerce issues a registration number. Legal entities and associations also obtain an additional Identification Number (RSIN). Furthermore, company branches receive unique 12-digit establishment numbers.
After successful inclusion in the Trade Registry, the Chamber of Commerce transfers automatically the information of the company to the taxation system.
Meanwhile, your entity is also registered for Value Added Tax in the country. The VAT number is issued at the time of registration at the Commercial Chamber for sole proprietors and within several weeks for all other business forms: corporations, companies with limited liability, partnerships. Unless there are additional questions by the tax office to determine your VAT status.
The Netherlands VAT number
Once you have obtained your Netherlands VAT number registration, consider the following information about the Value Added Tax number you have received: it consists of fourteen characters starting with NL (the code of the country), continuing with the Identification Number or the Civic Service Number and ending with a three-digit code from B01 to B99. Your Dutch VAT number will be stated by the local tax authorities on the forms and letters they send you. In some of the forms, the authorities will use your general tax number. It is almost identical to the Value Added Tax number but lacks the country code.
VAT in the Netherlands
VAT rates in the Netherlands can be 0, 9 or 21%, depending on the case. If you are conducting business in a foreign country, the 0% rate might apply. For many services and goods, the country applies the reduced 9% rate (e.g. medicines, foods, housing reconstruction – paint and plaster). For all other services or goods, the authorities charge VAT at the general 21% rate. Some activities within the scope of certain industries are not subject to VAT, i.e. an exemption has been granted. These include journalists, writers, composers and cartoonists, collective interests, insurance and financial services, healthcare, fund-raising, gambling, education, childcare, television and radio, sports clubs and organizations.
If you need more detailed information and help with VAT registration in Holland, please, contact our local team of lawyers. You can also read more on taxation in the Netherlands.
Updated on 6-5-2022.