If you work as a freelancer (ZZP) in the Netherlands, you almost certainly charge btw, the Dutch value added tax. Btw itself is not complicated, but the Dutch forms, deadlines and EU rules trip up many newcomers. This guide explains the essentials in plain English.
How btw works
You add btw to the invoices you send to clients and pay that amount to the Belastingdienst. At the same time, you can deduct the btw you paid on your business costs, such as a laptop, software or a coworking membership. In your btw return you report both, and you pay (or get back) the difference.
The Dutch btw rates
- 21% is the standard rate and applies to most services freelancers provide.
- 9% is the reduced rate for specific goods and services, such as food.
- 0% and exemptions apply in specific situations, for example some international transactions and certain medical or educational services.
Not sure which rate applies to your work? Check before you send your first invoice; correcting invoices later is a hassle for you and your clients.
When to file and pay
Most freelancers file quarterly. The Belastingdienst sets your filing period when you register. The return and the payment are due by the last day of the month after the quarter:
| Quarter | Deadline for return and payment |
|---|---|
| Q1 (January – March) | 30 April |
| Q2 (April – June) | 31 July |
| Q3 (July – September) | 31 October |
| Q4 (October – December) | 31 January |
You must file a return even if you had no income in that quarter. Make sure the payment has reached the Belastingdienst by the deadline, not just been sent.
Invoicing clients in other EU countries
If you provide services to a business client in another EU country, you usually don't charge Dutch btw. Instead, the btw is "reverse charged" (btw verlegd): your client accounts for it in their own country. Your invoice should state the client's VAT number and that the VAT is reverse charged. You also report these sales in a separate EU sales listing (the ICP return).
For clients outside the EU and for private individuals abroad, different rules apply. Check them per client rather than assuming.
What btw can you deduct?
You can deduct btw on costs you make for your business, as long as you have a proper invoice in your business name. Btw on private expenses is not deductible, and for costs you use both privately and for business, only the business part counts. Keep in mind that some costs, such as business gifts or certain staff and entertainment costs, have extra restrictions.
The small business scheme (KOR)
With the kleineondernemersregeling (KOR) you don't charge btw to your clients and you don't file btw returns. To qualify, your turnover must stay under €20,000 in the year you join and in the previous calendar year, and your business must be established in the Netherlands.
The catch: you can't deduct any btw on your costs either. The KOR is often attractive if you work mainly for private clients and have few costs. If your clients are businesses that can reclaim btw anyway, or you are investing in equipment, it may cost you money.
Common mistakes
- Using the wrong rate, or charging Dutch btw to EU business clients instead of reverse charging.
- Forgetting the EU sales listing (ICP return).
- Deducting btw on private expenses or on receipts that aren't in the business name.
- Spending the btw you collected. It isn't your money: set it aside in a separate account.
- Missing a deadline, which leads to fines and interest.
Made a mistake in an earlier return?
If the difference is €1,000 or less, you can usually correct it in your next btw return. For larger differences, you file a supplementary return (suppletie) for the period concerned.
Keep your records
Dutch entrepreneurs must keep their administration for 7 years, and records about real estate for 10 years. Digital storage is fine, as long as the records stay complete and readable.
Want someone to check your btw setup? In a free 30-minute Dutch Tax Health Check I look at your rates, EU invoicing and deadlines, and tell you whether the KOR makes sense for you.