How do VAT returns work for entrepreneurs?

What is a VAT return?

A VAT return is used to declare how much VAT you have received from customers and how much VAT you have paid on business expenses. As a business owner, you charge VAT on your services or products. Your customers pay this VAT to you. You then pay the VAT you have received to the Netherlands Tax  Administration (Belastingdienst).

Sometimes you also pay VAT yourself, for example on a laptop or equipment for your business. You can claim back the VAT on your business expenses when you submit your VAT return. This is known as input tax (voorbelasting aftrekken.)

Must you always file a VAT return? 

If the Tax Administration sees you as an entrepreneur for VAT purposes then yes, you must always file a VAT return. Even if you have no turnover, you usually still have to submit a VAT return. In your return, you should state that you have had no turnover. This is known as a zero return.

Entrepreneur for VAT purposes

After registering your company in the Business Register of the Netherlands Chamber of Commerce KVK, you will receive a letter from the Tax Administration stating whether you are an entrepreneur for VAT purposes and how and when you must submit a VAT return.

This letter also contains your VAT identification number (VAT ID) and your VAT tax number. You must include your VAT ID on your letterhead, invoices, and on your website. You only use the VAT tax number when communicating with the Tax Administration.

Small businesses scheme (KOR)

Is your turnover excluding VAT less than €20,000 per calendar year? Then you can opt for the small businesses scheme (kleineondernemersregeling, KOR). In that case, you do not charge VAT on your deliveries. You may also not deduct the VAT on costs (input tax). You do not have to submit a VAT return.

File a return

You can submit the VAT return digitally via the secure portal (in Dutch) of Belastingdienst.nl, called Mijn Belastingdienst Zakelijk. The Tax Administration will send you login details. On their website, the Tax Administration also provides explanatory notes to the VAT return in Dutch and English. 

Do you have an eenmanszaak? You can log in using your DigiD or eHerkenning. This is comparable to DigiD but for entrepreneurs. Does your business have another legal form, such as a VOF or BV? Then you need to use eHerkenning . Remember to apply for eHerkenning on time, otherwise you cannot file your VAT return.

Other ways of filing your VAT tax return

You might be able to file the VAT return with your own accounting software. It is also possible to outsource the return to your bookkeeper or accountant.

When to file the return

Most entrepreneurs submit their VAT return on a quarterly basis. You may also be asked to file your returns on a monthly or annual basis. This depends on the amount of your turnover. Even if you have no turnover in a certain period, you must file a VAT return. The following deadlines for submitting returns apply:

• Monthly and quarterly return

  You must submit the return no later than the last day of the month following the quarter or month for which you are filing the return. So for February you file the return no later than 31 March. For the first quarter you file your return no later than 30 April.

• Annual return

  You must submit the return before April 1 of the following year.

How do you pay VAT?

If you must pay VAT, you will not receive an assessment. You must transfer the amount yourself. The due date for payment is the same as the due date for filing your tax return.

Do you file your tax return via the Tax Administration website? Then you can also pay with iDEAL. There is a payment link in the tax return. Avoid a fine from the Tax Administration and pay on time.

Fines for late or no filing

If you file a VAT return late or not at all, you will receive an additional assessment with a high, estimated VAT amount, and a fine. The BTW-Alert app (in Dutch) helps you remember to file a VAT return on time and avoid a fine. Always file a VAT return, even if you had no turnover.

Questions about your VAT return?

Our business advisers will be happy to help you. Call the KVK Advice Team on weekdays between 8:30 and 17:00 via 088 585 22 22.