Entrepreneurs in the Netherlands have to file VAT returns (Value Added Tax), or in Dutch; btw-aangifte, with the Dutch Tax and Customs Administration. You can do this either monthly, quarterly or on a yearly basis. However, most entrepreneurs choose to do this quarterly. Read on this page who has to submit a VAT return, when and how to submit it, what to do when you made a mistake and find out if you are eligible for the Small Businesses Scheme (KOR).
Do you file a tax return on a quarterly or monthly basis? Then you file your tax return on the last day of the month. Do you file a tax return every year? Then you have to file your tax return on 1st of April of the following year. It is important to submit your VAT return on time and without any mistakes to avoid a fine by the Tax Authorities (Belastingdienst).
You can also have someone else do the VAT return, for example your bookkeeper. For non-native Dutch people it can be difficult to keep up with all the rules and deadlines. That is why we advise hiring an accountant or bookkeeper who is fluent in English and Dutch and also has knowledge of the Dutch tax rules.
If you have forgotten an invoice with your VAT return, this is not a problem as long as you report it on time. You can often correct this immediately without any problems, or you can correct this with the next VAT return. Of course, this also applies if you have made a mistake, causing you to pay too much instead of too little tax. Settlement of an error in the next VAT return is only possible if it concerns an amount of less than € 1000.
If you have a maximum turnover of € 20,000 in a calendar year, you may qualify for the Small Businesses Scheme. If this is the case, you do not charge any VAT to your customers, and you do not have to pay VAT to the Tax Authorities. On the other hand, you can’t deduct the VAT on business costs. So, with a few exceptions, you don’t need to file a VAT return.
To be eligible for the KOR:
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