How to avoid an additional VAT assessment

What is a additional VAT assessment?

An additional assessment for turnover tax is a notice issued by the Tax Administration if you have underpaid turnover tax, failed to submit a VAT return, or paid late. With this assessment, the Tax Administration is asking you to pay the turnover tax that is still due. So, it is not a new tax, but a correction.

What is VAT?

Products and services are subject to value-added tax (VAT, BTW in Dutch). You charge VAT to your customers and pay it to the Belastingdienst (Tax Administration). Most business owners must file a VAT return every 3 months. 

When do you get an additional assessment?

You will receive a naheffingstoeslag in the following situations:

• You did not file your BTW return or filed it too late.

Then the Netherlands Tax Administration will then make an estimate of the amount you owe.

• You have not paid the VAT, paid too little, or too late

Have you submitted a return but failed to pay, paid too little, or paid late? In that case, too, you may receive a supplementary assessment.

Failure to file a tax return

If you fail to submit a tax return or submit it too late, it is considered failure to file a tax return (aangifteverzuim, in Dutch).

• If the Tax Administration receives your tax return within 7 calendar days of the deadline for filing, you will not be fined.
• If you miss this deadline, you will receive a fine of €82.
• If you frequently fail to submit a tax return or submit it late, you may be fined €165.

Failure to pay

If you do not pay, pay too little, or pay late, this is considered failure to pay (betaalverzuim, in Dutch).

• The penalty is 3% of the amount that was paid late or not at all. This penalty is a minimum of €50 and a maximum of €6,709 per year.
• If you frequently pay late, you may be charged a penalty of 10%.
• If you pay within 7 days of the payment deadline, you may not be charged a penalty, provided that you paid your previous tax return on time and in full.

How can you avoid a additional tax assessment?

In many cases, you can avoid an additional tax assessment by submitting your VAT return on time and paying your VAT on time. These tips will help you reduce the risk of receiving an additional tax assessment.

Always submit your VAT return

Always submit your VAT return, even if:

• you have not (yet) generated any turnover.
• your business temporarily has little work.
• you have not charged any VAT or VAT has not been charged to you. In such cases, you should submit a nil return (nulaangifte or nihilaangifte). You should enter €0.00 in all fields where business details are required.

You must also submit a VAT return in the following situations:

• You have ended your business.

If, after ending your business, you still receive a notice stating that you must submit a return, this is a legal obligation.

• You wish to join the small businesses scheme (KOR).

Have you applied for the small business scheme, KOR? If so, you must continue to submit VAT returns until you have received confirmation of your participation.

• You have not received a letter.

Have you charged VAT to customers but not received any notification regarding your VAT return? If so, please contact the Netherlands Tax Administration.

• You supply goods or services that are not subject to VAT

Some goods and services are exempt from VAT. Do you not need to charge VAT on the goods and services you sell? Always check whether a VAT return has been generated for you, as you are then obliged to submit a return.

Deadlines for filing a VAT return

Most business owners submit their VAT returns every quarter. The following deadlines apply:

• 30 April for the first quarter
• 31 July for the second quarter
• 31 October for the third quarter
• 31 January for the fourth quarter

eHerkenning

If your company has any legal form other than eenmanszaak (sole proprietorship), you will need eHerkenning to file tax returns. Apply for eHerkenning before you return is due, because you cannot file a return without it.

What if you do get an additional assessment?

Follow these steps if you have received a additional VAT assessment (in Dutch):

Step 1: Find out why you have areceived the assessment

The letter from the Tax Administration will state whether it relates to a late return, a late payment, or another issue.

Step 2: Check your administration

Check ‘Mijn Belastingdienst Zakelijk’ and your own business administration to see whether you failed to submit a return or submitted it late. And whether you failed to pay VAT, paid too little or paid it late.

Step 3: Check the amount of the assessment

Check whether the additional assessment is correct or not (in Dutch):

• Is the additional assessment incorrect?

You can lodge an objection if you think the amount is incorrect or because you believe you have received the assessment unfairly.

• Is the additional assessment correct?

Submit your VAT return and pay your penalty. Is the amount too high to pay straight away? If so, apply for a deferral of payment.

Can you lodge an objection to a additional VAT assessment?

Yes, you can lodge an objection to an additional assessment for turnover tax. You must do so within six weeks of the date shown on the additional assessment.

How can you lodge an objection?

There are 3 ways to lodge an objection:

Lodging an objection online

You can lodge an objection online via ‘Mijn Belastingdienst Zakelijk’. Log in and go to ‘BTW’. Then click on ‘BTW aangifte’ and then on ‘Bezwaar’. You will find the online form here. 

Lodging an objection using a form

Download the form ‘Bezwaar zakelijk’. Once completed, send the form to the tax office listed on the additional assessment notice.

Lodging an objection in a letter

Send a letter to the tax office named on the additional tax assessment. Make sure to include your VAT tax number, the assessment number, and the reason for your objection in the letter. Check with the Tax Administration to see what further details you need to include in your letter.