VAT Rates on Dutch, EU and Non-EU Invoices Explained

One of the most confusing aspects of running a business in the Netherlands is knowing which VAT rules apply when you invoice customers at home and abroad. About other requirements relating to invoices see my article here.

Should you charge 21% VAT? Can you use the 0% rate? When does the reverse-charge mechanism apply? And how do you know whether an EU customer’s VAT number is valid?

Getting it wrong can lead to additional assessments, interest charges, and a great deal of administrative hassle. Fortunately, the basic rules are straightforward once you understand them.

1. Invoicing Customers in the Netherlands

For most products and services supplied to Dutch customers, you charge Dutch VAT.

The most common rates are:

• 21% VAT – the standard rate for most goods and services.
• 9% VAT – applies to certain goods and services such as food, medicines, books and some labour-intensive services.
• 0% VAT – applies only in specific situations, mainly involving international transactions.

For most consultants, freelancers, coaches, agencies and service providers, the standard 21% VAT rate is usually the default.

2. Invoicing Business Customers in Other EU Countries

When you provide services to a business customer in another EU country, you will often use the reverse-charge mechanism.

This means:

• You do not charge Dutch VAT.
• The customer accounts for VAT in their own country.
• You state “VAT reverse-charged” (or btw verlegd) on the invoice.
• You include the customer’s VAT number on the invoice.

In many cases, you must also report the transaction in your ICP declaration (Opgaaf ICP).

Example

A Dutch marketing consultant invoices a German company for strategy services.

Invoice VAT: 0%

Invoice note: VAT reverse-charged

Customer VAT number: Required

Note: If you sell goods to private consumers in other EU countries (B2C), different VAT rules may apply. Reverse charge generally does not apply in these situations. Instead, the EU distance-selling rules may require you to charge the VAT rate of the customer’s country and report it through the One Stop Shop (OSS) scheme. Check the current rules before invoicing foreign consumers. Further information: EU One Stop Shop (OSS) [belastingdienst.nl] or VAT rules for e-commerce in the EU (KVK) [business.gov.nl]

3. Invoicing Customers Outside the EU

The rules depend on what you sell and who your customer is.

For many services supplied to business customers outside the EU, Dutch VAT is not charged.

For exports of goods outside the EU, the 0% VAT rate often applies, provided you can prove that the goods left the EU.

Because international VAT rules can vary significantly depending on the type of service or product involved, it is worth checking the specific requirements before invoicing non-EU customers.

4. Always Check EU VAT Numbers

If you apply reverse charge to an EU business customer, it is important to verify that the customer has a valid VAT identification number.

The European Commission provides the VIES VAT Number Validation System, which allows you to check VAT numbers issued by EU member states.

Why does this matter?

If a customer’s VAT number is invalid, the Tax Administration may conclude that reverse charge did not apply and that Dutch VAT should have been charged instead.

Useful link: VIES VAT number validation | European Commission

Common Invoicing Mistakes

1. Using 0% VAT and VAT Exemption as if They Mean the Same ThingThey do not. A 0% VAT rate is still VAT. The transaction remains taxable and must usually be reported accordingly.
   VAT exemption is defined based on the nature of the activity. You can check these on the site of the Belastingdienst here.
2. Forgetting to Add the Reverse-Charge StatementIf reverse charge applies, your invoice should clearly indicate this.
3. Not Recording the Customer’s VAT NumberFor many intra-EU B2B transactions, the customer’s VAT ID is an essential part of the documentation.
4. Not Keeping Evidence for 0% VAT TransactionsWhen applying the 0% rate to exports or intra-Community supplies, you must be able to demonstrate why the 0% rate was used, for example through transport documentation and customer records.

Good News: Your Accounting Software Usually Helps

Most modern accounting systems used by Dutch entrepreneurs—including Moneybird, Jortt, e-Boekhouden.nl, and similar packages—can automatically apply the correct VAT treatment based on the customer’s country, VAT number and transaction type.

However, software can only work with the information you provide. Always verify that the customer type, country and VAT number are entered correctly before sending the invoice.

Conclusion

When invoicing from the Netherlands, start with three simple questions:

1. Is the customer in the Netherlands, another EU country, or outside the EU?
2. Is the customer a business or a private individual?
3. Does the customer have a valid VAT number?

The answers determine whether you charge 21% VAT, 9% VAT, 0% VAT, or use reverse charge. Taking a few moments to check the details before sending your invoice can save you a great deal of trouble later.

Frequently Asked Questions

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