VAT mistakes that cost you time (and sometimes fines)

Filing your VAT return is part of running a business in the Netherlands. It’s not complicated in theory—but small mistakes are easy to make, and they add up quickly.
The tricky part: VAT is rule-based. It doesn’t run on “what feels logical”, but on timing rules, invoice requirements, and strict conditions set by the Belastingdienst.
Most accounting software helps with calculations and reporting—but it only works properly if your bookkeeping is correct.

Here are the most common mistakes I see, and how to avoid them.

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Understand the rules to avoid the first group of mistakes

Many VAT mistakes don’t come from the return itself—but from misunderstanding how the system works.

VAT is simple at the core:

• You charge VAT to your customers (output VAT)
• You pay VAT to suppliers (input VAT)
• You pay the difference to the Belastingdienst

And yes—you can usually deduct input VAT, but only if the rules are met.

Here’s where it often goes wrong:

1. Using the wrong scheme. (KOR) If your turnover stays below €20,000, you can opt for the small business scheme (KOR). You don’t charge VAT and don’t file returns—but you also can’t reclaim VAT on costs. [kvk.nl]
2. Claiming VAT when you’re not allowed to - No receipt = no VAT deduction - Private expenses are not deductible - Meals and hospitality are typically not reclaimable
3. Working with incomplete invoices. If an invoice is missing required details (date, VAT rate, VAT amount, supplier details), you cannot reclaim VAT.
4. Mixing private and business use incorrectly. If something is partly private, you can only deduct the business portion.

In short: VAT isn’t about what you paid—it’s about whether the expense qualifies under the rules.

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Getting the timing and bookkeeping wrong

The second group of mistakes comes from how transactions are recorded.

1. Using the payment date instead of the invoice date. VAT returns are normally based on the invoice date—not when you pay or get paid.
2. Including the wrong period in your return. VAT returns are tied to strict periods (usually quarterly), and each return has a clear deadline.
   For example: Q1 includes January–March, and the deadline is 30th of April.
3. Not splitting VAT rates correctly. Invoices can contain multiple VAT rates (e.g. 21% and 9%).
   If you don’t separate them properly, your return will be wrong—even if the total looks right.
4. Leaving your bookkeeping until the deadline, and realizing too late that some details or invoices are missing.
5. Submitting too late. Your deadlines are communicated each year in a mail from the Belastingdienst, for most entrepreneurs filing quarterly returns this is always the end of the month following the quarter (so 30 April for Q1)
6. Paying too late. VAT is due by the deadline—both the return and the payment. Late filing or payment automatically triggers a penalty. I suggest paying immediately when you submit – so you will not accidentally forget it.

👉 After all, the VAT return is only as good as your bookkeeping.

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So… can software prevent these mistakes?

To a large extent, yes.
Modern bookkeeping tools calculate VAT automatically, prepare the return which you can submit directly from the software. They also help you to keep track of all your invoices and receipts, and flag if something is missing.

But they don’t always decide correctly:

• which VAT rate applies – see my article about each line of the VAT return here.
• whether something is deductible – see some that are certainly not in this blog post
• how to handle mixed-use expenses

That part still depends on you.

The Belastingdienst even offers an app to remind you of the VAT deadlines, you can download it here:
Btw-Alert App

Frequently Asked Questions

General information, not tax advice. I am not a tax adviser (belastingadviseur); for your own situation, consider asking a qualified one.