VAT and excise duty

Value added tax (VAT) is payable on goods and services supplied by businesses and on goods imported by both businesses and private individuals. It is charged at each step in the production chain, from raw material to end user. VAT is also paid on the distribution of goods and services. 

VAT liability

Everyone who independently carries on a business is liable to VAT. This includes both natural persons (people with their own business) and legal persons such as foundations, public companies (NVs) and private companies (BVs).

Entrepreneurs must register with the Tax and Customs Administration and are responsible for filing their own VAT returns. If they are registered they will usually automatically receive a periodic invitation from the Tax Administration to file a return, electronically or otherwise.

VAT rates

VAT rates are based on the European VAT Directive. All EU member states must observe the same rules. The general VAT rate, for example, may not be lower than 15%.

The Netherlands has three externe link: VAT rates:

  • the general rate of 19%;
  • the reduced rate of 6%, e.g. for food and medicines, labour intensive services (such as house painters and plasterers), books and magazines, passenger transport and water;
  • the zero rate, for certain cross-border transactions such as the export of goods to countries outside the EU. This rate also applies to goods supplied to entrepreneurs within the EU and to certain services that must be provided for exports.

Excise duty

Excise duty is payable on certain consumer goods. Excisable goods include:

  • beer;
  • wine and intermediate products (e.g. sherry and port);
  • other products containing alcohol (e.g. spirits);
  • tobacco products (e.g. cigarettes, cigars and pipe/cigarette tobacco);
  • mineral oil (e.g. petrol, diesel oil and LPG).

More information on externe link: excise duties for private individuals  and externe link: excise duties for businesses  is available on the Customs’ website.

Imports

Different rules apply to the importation of goods by private individuals and by businesses. If the product does not come from the EU, the business or individual pays VAT in the country in which the product enters the EU.

More detailed externe link: information on VAT in the Netherlands is available on the Tax and Customs Administration’s website.

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