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Invoicing from the Netherlands

Dutch VAT (BTW) guide for service businesses

21%

Standard Rate

9%

Reduced Rate

NL

VAT Prefix

BTW

Local Name

VAT Registration in the Netherlands

In the Netherlands, VAT is called BTW (Belasting over de Toegevoegde Waarde). If you provide services from the Netherlands, you generally need to register for BTW with the Belastingdienst (Dutch Tax Authority).

Kleineondernemersregeling (KOR)

The Netherlands offers a small business scheme that exempts businesses with annual turnover below €20,000 (updated January 2025). Under this scheme, you don't charge VAT but also cannot reclaim VAT on purchases.

If your turnover exceeds €20,000 or you choose to opt out of the KOR, you must register for VAT and charge 21% on most services.

Cross-Border SME Scheme (Directive 2020/285)

Since January 2025, small businesses established in other EU Member States can apply for VAT exemption in the Netherlands, provided their EU-wide annual turnover does not exceed €100,000 and they meet the local threshold. Registration is via a single prior notification in the Member State of establishment.

VAT Rates

Rate type	Percentage
Standard	21%
Reduced	9%

For the full list of reduced rate categories, see the European Commission VAT rates reference.

Invoice Requirements

Dutch invoices must include the following information:

Your details

1 Business name and address

2 BTW number (NL123456789B01)

3 KVK number

Client details

4 Client name and address

5 Client VAT number (if B2B)

Invoice details

6 Sequential invoice number

7 Invoice date

8 Description of services

Amounts

9 Amount excluding VAT

10 VAT rate and amount

11 Total including VAT

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Cross-Border Invoicing

To EU Businesses (B2B)

When invoicing a VAT-registered business in another EU country, the reverse charge applies. You invoice without VAT — the buyer accounts for VAT in their country.

Required invoice note

"VAT reverse charge - Article 196 Council Directive 2006/112/EC"

You should verify that your client is a taxable person — the standard way to do this is by checking their VAT number through VIES.

To EU Consumers (B2C)

For most services to consumers in other EU countries, you charge Dutch VAT (21%). For digital services, you may need to register for OSS and charge the destination country's VAT rate.

Outside the EU

Services to clients outside the EU are outside the scope of Dutch VAT. Invoice without VAT.

Required invoice note

"Outside scope of EU VAT"

How Invoxo handles this

Invoxo validates EU VAT numbers via VIES automatically when you add a client. If VIES is down, you can continue working—Invoxo saves the last known status and lets you re-check later. The correct VAT treatment and invoice wording are applied automatically.

Learn more about VIES validation →

BTW Number Format

Dutch VAT numbers follow the format: NL + 9 digits + B + 2 digits.

Example

NL123456789B01

The 9 digits form a unique identifier for VAT purposes.

Common questions

What is the KOR and should I use it? ⌄

The Kleineondernemersregeling (KOR) exempts businesses under €20,000 annual turnover from charging BTW. However, you also cannot reclaim input VAT. It's best for low-expense businesses selling to consumers.

Do I need a KVK number on my invoices? ⌄

Yes. Dutch invoices must include your KVK (Chamber of Commerce) number along with your BTW number. This is a legal requirement.

How do I format my Dutch VAT number? ⌄

Dutch VAT numbers follow the format NL + 9 digits + B + 2 digits (e.g., NL123456789B01).

When do reverse charge rules apply? ⌄

Reverse charge applies when you invoice a VAT-registered business in another EU country. You should verify that your client is a taxable person — the standard way to do this is by checking their VAT number through VIES — and include the reverse charge statement on your invoice.

Disclaimer: This guide covers common scenarios for service businesses invoicing from the Netherlands. For complex situations, confirm requirements with your accountant.