Everything you need to know about BTW (Belasting over de Toegevoegde Waarde) in the Netherlands — no standard threshold, the KOR exemption scheme, 21% rate, and quarterly filing with the Belastingdienst.
Last updated: June 2026
The Netherlands has no registration threshold for VAT (BTW). If you are a Dutch entrepreneur making taxable supplies — even your very first invoice — you are in principle required to register for BTW with the Belastingdienst (Dutch Tax and Customs Administration) before you start supplying.
However, there is an important exception: the KOR (Kleineondernemersregeling), or Small Business Scheme. If your annual Dutch BTW-taxable turnover is (or is expected to be) under €20,000, you can choose to use the KOR scheme. Under KOR, you do not charge BTW on your sales, you do not file quarterly BTW returns, and you do not reclaim BTW on your purchases. It simplifies administration significantly for very small businesses and freelancers.
KOR is opt-in. You apply to the Belastingdienst and, once approved, stay in the scheme for at least 3 years unless your turnover exceeds €20,000 mid-year (at which point you must exit the scheme immediately and register for regular BTW). If you expect to regularly buy goods or services with significant BTW (a camera, computer, car), it may be worth opting out of KOR to reclaim those costs.
Foreign businesses: If you are a non-Dutch business making taxable supplies in the Netherlands (selling Dutch goods, holding Dutch stock, providing construction services in the Netherlands), you must register for Dutch BTW, regardless of turnover. There is no threshold for foreign businesses.
Dutch BTW rates: 21% standard (most goods and services), 9% reduced (food, medicines, books, newspapers, hotel accommodation, public transport, certain repair services), 0% for exports and intra-EU supplies. BTW-exempt supplies include healthcare, education, insurance, and certain financial services.
Before registering for BTW, Dutch businesses must be registered with the Kamer van Koophandel (KVK). Register at kvk.nl. The KVK registration costs €75.20 (as of 2026) and automatically notifies the Belastingdienst, which will usually send you a BTW registration letter automatically within a few weeks.
After KVK registration, you typically receive a letter from the Belastingdienst with your BTW-nummer (VAT number, format: NL999999999B01) and your OB-number (used for filing returns). This usually happens automatically — you do not need to file a separate VAT registration form for Dutch businesses.
If your turnover is expected to stay under €20,000, apply for KOR via Mijn Belastingdienst Zakelijk. The scheme takes effect from the start of the next calendar quarter after your application. Once on KOR, add "BTW verlegd" or "Vrijgesteld o.g.v. de kleineondernemersregeling (KOR)" to your invoices instead of a BTW amount.
File quarterly BTW returns (aangifte omzetbelasting) via Mijn Belastingdienst Zakelijk or using compatible accounting software (Moneybird, Exact Online, Twinfield). Most Dutch accountants use software with direct Belastingdienst integration.
Quarterly returns: BTW returns are filed quarterly for most businesses. Returns are due within 2 months of the end of each quarter (Q1 due by 31 May, Q2 by 31 August, Q3 by 30 November, Q4 by 28 February). You can request monthly filing if you regularly have BTW refunds. You pay net BTW (output BTW minus input BTW) or receive a refund if input exceeds output.
Invoicing: Dutch BTW invoices must include: your BTW-nummer, the customer's BTW-nummer (for B2B), invoice date, sequential invoice number, description of goods/services, net amount per BTW rate, the applicable BTW rate(s), and total BTW amount. For sales under €100 to consumers, simplified invoices are allowed.
Late filing: Failing to file on time results in an administrative penalty (verzuimboete) of up to €136 for the first offence and up to €5,514 for repeat offences. Interest (belastingrente) of 8% per annum accrues on unpaid BTW from 3 months after the end of the relevant tax year.
Yes, unless you are on the KOR scheme. Without KOR, you register for BTW before you start and add 21% (or 9% for applicable goods/services) to every taxable invoice. With KOR approved, you invoice without BTW and do not file quarterly returns.
Your BTW-nummer (also called omzetbelastingnummer) has the format NL999999999B01. The part before "B" is your RSIN (for companies) or BSN (for sole traders), and "B01" identifies it as the first BTW account. For intra-EU trade, you provide this full NL-prefixed number so EU customers can verify it via VIES. Your separate OB-number is only used for domestic Belastingdienst correspondence.
You must charge BTW at the rate of the customer's country, not Dutch rates. The simplest approach is to use the EU One Stop Shop (OSS) scheme — you register once in the Netherlands and file a single quarterly OSS return with the Belastingdienst covering all EU consumer sales. Without OSS, you would need to register in each EU country separately.
In some cases, yes. You may be able to reclaim BTW on goods and services purchased up to 5 years before your registration, provided they are still in use for BTW-taxable activities and you have the original invoices. Apply via your first BTW return and explain the pre-registration purchases.
"BTW verlegd" means "VAT reversed" — it is the Dutch term for the reverse charge mechanism. It appears on invoices between Dutch VAT-registered businesses (B2B) in certain situations (construction sector, scrap metal, telecommunications) and on all B2B invoices to foreign VAT-registered buyers. When BTW verlegd applies, the buyer accounts for the VAT, and the seller invoices net without adding BTW.
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