BTW in plain English: the 21%, 9% and 0% rates, your two VAT numbers, quarterly returns and deadlines, reclaiming VAT on costs, the KOR scheme and reverse charge for EU clients.
BTW (belasting toegevoegde waarde) is the Dutch name for VAT. As a business you collect it from your clients on behalf of the Belastingdienst, the Dutch tax authority, and you pay it on what you buy for your business. Every quarter you settle the difference. The VAT on your invoices is never your income: it is money you hold for the tax authority.
Most services and products carry the standard rate of 21%. A reduced rate of 9% applies to things such as food, books, medicines and some repairs and services. A 0% rate applies, for example, to exports outside the EU and supplies of goods to VAT-registered businesses in other EU countries. Some activities are exempt altogether, such as most medical care and certain education. Exempt is not the same as 0%: with an exemption you also cannot reclaim VAT on your costs.
After you register a sole proprietorship (eenmanszaak) with the KVK, the Belastingdienst sends you two numbers. The VAT identification number (btw-id, in the format NL000000000B01) is the one you put on your invoices and share with clients. The VAT tax number (omzetbelastingnummer) is for your returns and correspondence with the tax authority; keep it to yourself.
Most freelancers file every quarter. The return and the payment are due by the last day of the month after the quarter: 30 April for Q1, 31 July for Q2, 31 October for Q3 and 31 January for Q4. You file online in Mijn Belastingdienst Zakelijk, or your accountant does it for you. Filing or paying late can lead to a fine, so put the dates in your calendar. If you had no turnover in a quarter, you still file a return, showing zero.
The VAT you pay on business purchases, such as a laptop, software subscriptions or a co-working desk, is called voorbelasting. You deduct it from the VAT you collected. If you paid more than you collected, the Belastingdienst refunds the difference. You need a proper invoice or receipt in your business name for each purchase, and the cost has to be for your business. Keep these records for 7 years.
With the kleineondernemersregeling (KOR) you do not charge VAT and you do not file VAT returns, as long as your turnover stays under €20,000 a year. That can make your prices more attractive for private clients. The downside: you cannot reclaim VAT on your costs, and once you join you stay in for at least three years unless your turnover goes over the limit. Compare both options before you apply.
For most services to a VAT-registered business in another EU country, you do not charge Dutch VAT. Instead you write 'VAT reverse-charged' (btw verlegd) on the invoice, together with your client's VAT ID, and the client pays the VAT in their own country. You report these sales in your VAT return and in a separate listing (opgave ICP). Private clients abroad and clients outside the EU follow different rules, so check your situation or ask an accountant.
FaturaPro calculates the VAT on every invoice at the rate you choose, keeps currencies apart, and adds up the VAT on your sales and on your expenses per quarter. Scan a receipt and its VAT is filled in. At the end of the quarter you have the three numbers you need: VAT collected, VAT paid and the balance to pay or reclaim. You or your accountant then file the return.
Usually yes, at 21% for most services. Exceptions are exempt activities, reverse-charge sales to EU businesses, and the KOR scheme for small turnovers.
By 31 October: both the return and the payment. Q4 is due by 31 January.
Yes. An invoice does not have to be in Dutch, as long as it contains all the required details. The Belastingdienst can ask for a translation.
No. It gives you the quarterly figures; you or your accountant file the return in Mijn Belastingdienst Zakelijk.
Use the official guidance for the rules or technical profile that applies to your transaction.