As a freelancer in the Netherlands, you need to account for VAT (Value Added Tax - BTW in Dutch). Whether you're just starting out or have been an entrepreneur for years, it's essential to understand VAT rules properly. In this article, we discuss everything you need to know about VAT rates, calculations, and important changes for 2025.
Stay up to date with the latest VAT regulations to avoid surprises.
VAT rates in the Netherlands (2024-2025)
The Netherlands has three VAT rates that you as a freelancer need to know:
| VAT Rate | When applicable | Examples |
|---|---|---|
| 21% Standard | Most services and products | Consultancy, IT services, marketing, design, office supplies |
| 9% Reduced | Specific goods and services | Food products, books, medicines, hairdresser, bicycle repair |
| 0% Zero rate | International services | B2B services within EU, export outside EU, international transport |
Small Business Scheme (KOR) - Is it right for you?
The Small Business Scheme (Kleineondernemersregeling or KOR) is an important scheme for starting and small freelancers. But is it beneficial for you? Let's look at the pros and cons:
If you opt for the KOR, make sure your invoices comply with the legal requirements.
Calculating VAT: Practical examples
Let's look at some practical examples of VAT calculations:
Example 1: Consultancy service
Rekenvoorbeeld
Example 2: Business laptop
Rekenvoorbeeld
Need help with your VAT return? Read our complete step-by-step VAT filing guide.
Quarterly returns: Step by step
Q1: Jan-Mar
Deadline: April 30
Note: Often busy!
Q2: Apr-Jun
Deadline: July 31
Holiday period!
Q3: Jul-Sep
Deadline: October 31
After summer
Q4: Oct-Dec
Deadline: January 31
New Year!
VAT for international services
Do you work for clients abroad? Then special rules apply:
| Client type | VAT rate | Action required |
|---|---|---|
| Dutch consumer | 21% VAT | Normal VAT calculation and payment |
| Dutch business | 21% VAT | Normal VAT calculation and payment |
| EU business (with VAT number) | 0% VAT | VAT reversed, mention client VAT number |
| EU consumer | 21% VAT | Calculate and pay Dutch VAT |
| Outside EU | 0% VAT | No VAT, but mention on invoice |
Practical tips for smooth VAT administration
Digital administration
Use software that automatically calculates VAT and prepares returns
Save 5+ hours per quarter
VAT savings
Set aside 21% of your revenue on a separate account by default
Prevent payment problems
Check VAT numbers
Always verify VAT numbers of new EU clients
Prevent assessments
Plan your returns
Put deadlines in your calendar with reminders a week before
Prevent fines
Frequently asked questions
Do I always have to charge VAT as a freelancer?
No, only if your revenue exceeds €20,000 per year or if you choose to be VAT-liable. With the Small Business Scheme (KOR) you are exempt.
Can I switch from KOR to VAT liability?
Yes, you can voluntarily choose VAT liability. This can be beneficial if you have many business expenses on which you can reclaim VAT. You can make the switch on January 1st of each year.
What happens if I exceed the €20,000 threshold?
You must register with the Tax Authority within 4 weeks and start calculating and paying VAT from that moment. You will then receive instructions for your first VAT return.
How long does it take to get VAT refunded?
Usually within 30 days after filing your quarterly return. For your first return or with high amounts, it may take longer due to checks.