VAT return: how does it work and what to watch out for?

VAT (BTW in Dutch) stands for Value Added Tax. Nearly every entrepreneur in the Netherlands must charge VAT to customers and periodically remit it to the Tax Authority. The VAT return is mandatory for: - Sole proprietors and freelancers - BVs and NVs (private/public companies) - Partnerships - Foundations and associations with commercial activities Only if you use the small business scheme (KOR) are you exempt.

In the Netherlands, there are three VAT rates: - 21% - the general rate (applies to most goods and services) - 9% - the reduced rate (food, books, medicines, hairdressers) - 0% - the zero rate (exports, intra-community supplies) It's important to apply the correct rate. A wrong VAT rate can lead to additional assessments and fines from the Tax Authority.

You file the VAT return digitally via the Tax Authority website or through your accounting software. The steps are: 1. Collect all invoices from the past period 2. Calculate the VAT due (received VAT minus paid VAT) 3. Fill in the return via Mijn Belastingdienst Zakelijk 4. Carefully check all amounts 5. Submit the return before the deadline The deadline is usually the last day of the month following the reporting period.

The most common mistakes we encounter: - Forgetting to include invoices - Applying the wrong VAT rate - Accidentally booking private expenses as business - Deducting VAT on non-deductible costs - Missing the deadline At Administratiekantoor Zandwijken, we thoroughly check every return before submission. This prevents unpleasant additional assessments.