What is the Dutch VAT identification number?

The VAT identification number (VAT ID) is essential for businesses when dealing with customers and suppliers, both within the Netherlands and across the EU. It is required on invoices, websites, and other business documents to comply with tax regulations. The VAT ID for sole proprietors consists of the country code NL, followed by 9 digits, a 'B', and a 2-digit check number (e.g., NL000099998B57). For other legal entities, it is linked to their RSIN number.

What is the Dutch VAT tax number?

The VAT tax number (ob-nummer) is used only to contact the Tax Administration. For sole proprietors, it starts with your BSN followed by B01 or higher (e.g., 111234567B01). For other entities, it's based on the RSIN. You receive both the VAT ID and VAT tax number automatically after registering with the KVK, even for VAT-exempt activities.

When should you use your VAT tax number?

Your VAT tax number (ob-number) is primarily used for communication with the Dutch Tax Administration. You’ll need it, for instance, when sending written correspondence or filing your VAT returns. In day-to-day operations, it’s not a number you’ll use frequently.

Why two VAT numbers?

Prior to 2020, the VAT tax number doubled as the VAT ID, but since it contained the citizen service number (BSN), it posed a risk of identity theft. To protect privacy, the VAT identification number (VAT ID) was introduced, which no longer includes the BSN. The VAT ID is designed for external use, such as on your website or invoices when dealing with customers or suppliers.

The VAT tax number, however, is meant solely for interactions with the Tax Administration and should not be used externally on things like invoices or business websites. This two-number system ensures greater privacy protection for entrepreneurs, limiting exposure of personal data.

Who has to submit a Dutch VAT return?

When to file VAT return? Monthly, quarterly, or yearly?

The Dutch Tax and Customs Administration will notify you how often and when to file a VAT return. This can be either monthly, quarterly or yearly. If you want to file the tax returns on a monthly or yearly basis, it is possible to arrange this in certain conditions. Send a letter to the Tax and Customs Administration to arrange this. 

Do you file a tax return on a quarterly or monthly basis? Then you file your tax return on the last day of the month. Do you file a tax return every year? Then you have to file your tax return on 1st of April of the following year. It is important to submit your VAT return on time and without any mistakes to avoid a fine by the Tax Authorities (Belastingdienst). 

How to file VAT return

Nowadays, the VAT return is done completely digitally. This can be done in the following ways:

• Or with your own tax return or administration software. The software must be suitable for Standard Business Reporting

• On the website belastingdienst.nl at ‘Login for entrepreneurs’ (Mijn Belastingdienst Zakelijk)

You can also have someone else do the VAT return, for example your bookkeeper. For non-native Dutch people it can be difficult to keep up with all the rules and deadlines. That is why we advise hiring an accountant or bookkeeper who is fluent in English and Dutch and also has knowledge of the Dutch tax rules. 

Filing my first VAT return

First you have to register your company with the Netherlands Chamber of Commerce or with the Dutch Tax and Customs Administration (this one is for non-resident companies). After registering your company, the Dutch Tax and Customs Administration will send you more information about your liability for VAT. They will give you a VAT identification number and a VAT number to use for your dealings with the Tax Administration. Also, you will receive a letter in which you find information about how and when to file your VAT returns. You might have to file your first VAT return on paper. 

Recover VAT return mistakes

Another option is to correct the error via a supplementary declaration. Supplementary VAT declarations (or: supplementary turnover tax) are corrections applied to previous declarations.

Small Businesses Scheme (KOR)

The Small Business Scheme, also known as ‘kleineondernemersregeling’ (KOR), is a tax provision that many self-employed persons or small businesses can claim. The KOR was created to reduce the burden on entrepreneurs who only generate a small income. This relates to both financial and administrative aspects. 

If you have a maximum turnover of € 20,000 in a calendar year, you may qualify for the Small Businesses Scheme. If this is the case, you do not charge any VAT to your customers, and you do not have to pay VAT to the Tax Authorities. On the other hand, you can’t deduct the VAT on business costs. So, with a few exceptions, you don’t need to file a VAT return. 

To be eligible for the KOR: 

• You comply with all administrative obligations with regard to VAT

• Your company has no legal personality. The rule therefore relates to a sole proprietorship, a partnership, a general partnership (VOF) or a smaller private company (BV).

• The company is established in the Netherlands or has a permanent establishment in the Netherlands.

• Your maximum turnover per calendar year is € 20,000.

Special VAT arrangements

In the Netherlands, there are multiple special VAT arrangements. We listed the most common arrangements below: 

• Profit margin arrangement: this arrangement is for people who deal in second-hand goods. You only have to pay VAT on the difference between the sale price and the purchase price.

• Travel agency arrangement: this arrangement is for travel services. You pay VAT on the profit margin for travel services, instead of paying VAT on the total price.

• Reverse-charge arrangement: with this arrangement you do not charge VAT, but reverse-charge it to your buyer.

VAT return for international trade

Do you provide services abroad? Or do you purchase services from abroad? In that case, use the Tax and Customs Administration's Services in and out of abroad tool. This shows you who has to declare the VAT on these services: you or your supplier. It also shows you in which country this should be. If you provide goods abroad or purchase goods from abroad, you can use the Delivery of goods abroad tool.