What You Need to Know

The Netherlands applies different VAT rates depending on the type of goods or services supplied.

The four possible VAT treatments are:

• 21% – Standard VAT rate
• 9% – Reduced VAT rate
• 0% – Zero VAT rate
• VAT Exempt – No VAT is charged under specific exemptions

Applying the correct VAT rate is an important part of remaining compliant with Dutch VAT legislation.

1️⃣ Standard VAT Rate – 21%

The 21% VAT rate is the standard rate and applies to most goods and services supplied in the Netherlands.

Examples include:

• Electronics
• Clothing and footwear
• Furniture
• Household goods
• Professional services
• Consultancy
• Advertising
• Software (unless another rule applies)
• Most business-to-business (B2B) domestic supplies

If no reduced rate, zero rate or exemption applies, the standard 21% VAT rate should generally be charged.

2️⃣ Reduced VAT Rate – 9%

The 9% VAT rate applies to certain goods and services specified by Dutch VAT legislation.

Common examples include:

• Most food and non-alcoholic beverages
• Medicines
• Books and e-books
• Newspapers and magazines
• Hairdressing services
• Bicycle repairs
• Certain cultural events and museums
• Certain passenger transport services
• Some agricultural goods and services

Please note that not all goods within these categories qualify for the reduced rate, and specific conditions may apply.

3️⃣ Zero VAT Rate – 0%

The 0% VAT rate applies to specific transactions where VAT is chargeable at 0%.

Common examples include:

• Intra-Community supplies of goods to VAT-registered businesses in other EU Member States (where the conditions are met)
• Exports of goods outside the European Union
• Certain international transport services
• Certain services connected with international trade
• Supplies to qualifying ships and aircraft

Although no VAT is charged to the customer, businesses generally retain the right to recover eligible input VAT relating to these supplies.

4️⃣ VAT Exempt Supplies

Some goods and services are exempt from VAT.

Where a VAT exemption applies:

• No VAT is charged to the customer.
• Input VAT relating to those exempt activities generally cannot be recovered.

Examples of VAT-exempt activities include:

• Certain healthcare services
• Certain educational services
• Insurance services
• Financial services
• Postal services
• Certain cultural activities
• Certain property transactions

The availability of an exemption depends on the specific circumstances and legal conditions.

5️⃣ Summary Table

⚠️ Important Notes

• The correct VAT rate depends on the type of supply and the specific circumstances.
• Similar products or services may be subject to different VAT treatments depending on how they are supplied.
• Businesses should retain documentation supporting the VAT rate applied.
• If the reverse charge mechanism applies, you may not need to charge Dutch VAT even where the standard rate would normally apply.

💡 Tips

✔ Check the applicable VAT rate before issuing your invoice.

✔ Keep evidence supporting the VAT treatment used.

✔ Ensure your accounting system is configured with the correct VAT rates.

✔ If you're unsure which VAT rate applies, seek advice before submitting your VAT return.

🧾 Need Help?

If you're unsure which Dutch VAT rate applies to your goods or services, please contact your Account Manager or VAT Compliance Specialist.

Our team will be happy to help you determine the correct VAT treatment for your business.