BTW (belasting over de toegevoegde waarde), or omzetbelasting, is the Dutch value-added tax. If you run a business in the Netherlands, understanding BTW is essential — it affects your pricing, invoicing, cash flow, and tax compliance.
BTW Rates in the Netherlands
The Netherlands applies three BTW rates:
- 21% (standard rate): Applies to most goods and services, including professional services, electronics, clothing, and general merchandise.
- 9% (reduced rate): Applies to food, non-alcoholic beverages, books, newspapers, medicines, certain cultural and recreational services, hotels, and public transport.
- 0% (zero rate): Applies to intra-EU supplies, exports outside the EU, and certain international services. You charge 0% but can still reclaim input BTW.
When Must You Register for BTW?
In principle, every entrepreneur (ondernemer) who supplies goods or services in the Netherlands must register for BTW and charge it on their invoices. This applies from your first business activity.
However, the kleineondernemersregeling (KOR) provides an exemption for small businesses with annual turnover below 20,000 euros. If you opt for the KOR, you do not charge BTW, do not file BTW returns, but also cannot reclaim input BTW on your purchases.
Your BTW Number
When you register with the KVK, the Belastingdienst automatically issues a BTW-identificatienummer (BTW-id). This number must appear on all your invoices and is used for communication with the tax authority.
Filing BTW Returns
Most businesses file BTW returns quarterly. Large businesses (annual BTW liability above a certain threshold) may be required to file monthly. The deadlines are:
- Q1 (January - March): due by April 30
- Q2 (April - June): due by July 31
- Q3 (July - September): due by October 31
- Q4 (October - December): due by January 31
Returns are filed electronically through Mijn Belastingdienst Zakelijk. You report the BTW you charged (output tax), deduct the BTW you paid on business purchases (input tax), and pay or receive the difference.
Invoice Requirements
Dutch invoices must include specific information to be valid for BTW purposes:
- Your company name, address, and BTW-id
- Customer's name and address
- Sequential invoice number and date
- Description of goods or services
- Quantity and unit price (excluding BTW)
- BTW rate applied and BTW amount
- Total amount including BTW
Reclaiming Input BTW
You can reclaim BTW on business purchases, provided you have valid invoices. This includes office supplies, equipment, professional services, and business travel. For mixed personal and business use items, you can only reclaim the business portion.
Use our invoice calculator to create BTW-compliant invoice calculations.