Netherlands VAT Rate for every business operating in the Netherlands
Being one of the most important regulatory tax requirements for every business operating in the Netherlands, Netherlands VAT rate are categorized differently for businesses, and are largely dependent upon the types of goods or services that are being sold by the entrepreneur or the business entity. In the broadest sense, the applicable Netherlands VAT rates are basically classified into three categories, and the rates applicable depend accordingly. The information contained below is a part of the Duijntax knowledge base. Duijntax is a specialized Tax advisory firm in the Netherlands that caters to businesses and entrepreneur in their Netherlands VAT advisory and compliance needs. Duijntax is one of the oldest and the most reputed firms specializing in this domain, with a successful and distinguished track record spanning decades of serving major clients, ranging from small businesses to large renowned multinational corporations, across the Netherlands and other countries in the European Union as well as other continents, including business entities based elsewhere in the world who sell goods or services in the Netherlands.
These are mentioned below for the ease and convenience of the reader:
General Netherlands VAT Rates:
The general Netherlands VAT rates for most goods and services supplied to intra community acquisitions and the imports of all goods, unless determined by the tax authorities to be otherwise is 19% of the total value of goods sold. Most commercial items, excluding items that fall under either the basic necessities categories or luxury goods, fall under this particular tax bracket.
Essential Goods Netherlands VAT Rates:
This particular rate is only applicable to the goods and services that are listed under essential categories in accordance with the laws pertaining to the VAT laws. These goods are usually mentioned in a listing called List 1 by the Netherlands Value Added Tax authorities. The rate is low, 6% of the value of the goods sold to be specific. Some of the items that fall under this category are: Foodstuffs, animal medicines, bandages, potable water, books, rented or leased books, the provision of sports or bathing facilities the provision of accommodation by a hotel, guest house or a business in a holiday location, magazines, pharmaceutical products, medical and pharmaceutical consumables, all forms of medical aids provided to humans or animals, general foods and beverages that are related to human consumption (except alcoholic beverages and related products), entrance for sports, events, theatres, cinemas, music performance, zoos, and several other such items that are listed under the particular categories in the Netherlands VAT guidelines.
Luxury Goods Netherlands VAT Rate
For goods and services that fall under the category of Luxury goods in the Netherlands, the rate, as per the amendment to the Netherlands VAT laws in 2012, is also at 19% of the total value of the goods sold. The amendment in the Netherlands VAT laws in 2012, intended to make the Netherlands one of the most tax friendly destinations for businesses in the European Union, equalized the Netherlands VAT rates to the same as the general goods category. Besides the three major Netherlands VAT categories mentioned above, there is a special and specific exemption known popularly as the 0% rate. This is a concession made by the Netherlands tax authorities and is a part of particular list of items, commonly called Table 2 and belong to the Netherlands VAT Act. The zero rate of VAT applies to such items as the export of goods, the supply of ocean-going vessels that carry essential goods and materials (in this particular type, luxury ocean craft or pleasure craft) and aircraft, the provisioning of ocean-going vessels, and other such goods and services.
These are mentioned below for the ease and convenience of the reader:
General Netherlands VAT Rates:
The general Netherlands VAT rates for most goods and services supplied to intra community acquisitions and the imports of all goods, unless determined by the tax authorities to be otherwise is 19% of the total value of goods sold. Most commercial items, excluding items that fall under either the basic necessities categories or luxury goods, fall under this particular tax bracket.
Essential Goods Netherlands VAT Rates:
This particular rate is only applicable to the goods and services that are listed under essential categories in accordance with the laws pertaining to the VAT laws. These goods are usually mentioned in a listing called List 1 by the Netherlands Value Added Tax authorities. The rate is low, 6% of the value of the goods sold to be specific. Some of the items that fall under this category are: Foodstuffs, animal medicines, bandages, potable water, books, rented or leased books, the provision of sports or bathing facilities the provision of accommodation by a hotel, guest house or a business in a holiday location, magazines, pharmaceutical products, medical and pharmaceutical consumables, all forms of medical aids provided to humans or animals, general foods and beverages that are related to human consumption (except alcoholic beverages and related products), entrance for sports, events, theatres, cinemas, music performance, zoos, and several other such items that are listed under the particular categories in the Netherlands VAT guidelines.
Luxury Goods Netherlands VAT Rate
For goods and services that fall under the category of Luxury goods in the Netherlands, the rate, as per the amendment to the Netherlands VAT laws in 2012, is also at 19% of the total value of the goods sold. The amendment in the Netherlands VAT laws in 2012, intended to make the Netherlands one of the most tax friendly destinations for businesses in the European Union, equalized the Netherlands VAT rates to the same as the general goods category. Besides the three major Netherlands VAT categories mentioned above, there is a special and specific exemption known popularly as the 0% rate. This is a concession made by the Netherlands tax authorities and is a part of particular list of items, commonly called Table 2 and belong to the Netherlands VAT Act. The zero rate of VAT applies to such items as the export of goods, the supply of ocean-going vessels that carry essential goods and materials (in this particular type, luxury ocean craft or pleasure craft) and aircraft, the provisioning of ocean-going vessels, and other such goods and services.
