VAT on products and services from other EU countries

If you have a business or a permanent site in the Netherlands and you purchase goods or services from another EU country, you usually need to pay Value Added Tax VAT (btw or omzetbelasting) in the Netherlands regarding these purchases. You calculate the VAT yourself in this case and you specify it in your VAT return. Do you use the goods or services for business activities that are taxed with VAT? Then you can deduct the VAT as input tax.

VAT on goods from other EU countries

Did you purchase goods in another EU country and are they delivered to an address in the Netherlands, i.e you import goods from another EN country? You will normally receive an invoice with 0% VAT. You must then pay the VAT in the Netherlands. This is referred to as intra-Community acquisition. If the goods are delivered to another EU country, you only need to pay VAT in the Netherlands if:

• you have used your VAT identification number (btw-id) when making the purchase, and
• you cannot prove that the VAT is paid in the EU country where the goods have arrived

To check what applies in your situation regarding VAT, you can consult the (Dutch-language) Intra-Community acquisition tool from the Dutch Tax and Customs Administration or check the How to deal with VAT on services to another country-tool (in Dutch).

Exporting from the Netherlands

If you export goods from the Netherlands to another EU country, the VAT will have to be paid in the other country. This is called intra-Community supply and is in fact an intra-Community acquisition in the destination country. These supplies are taxed at 0%.

VAT on services from other EU countries

If you purchase services from other EU countries, you will normally receive an invoice that states 'VAT reverse-charged' ('btw verlegd'). This means that you should pay the VAT in the Netherlands. This, however, does not apply to the following services:

• services that are related to immovable property
• some services related to giving access to events in the area of culture, the arts, sports, the sciences, leisure or education
• rental of a vehicle for short periods of time
• passenger transport
• restaurant and/or catering services

These services are taxed in the country of the business that supplies the service. They will charge VAT. If you use the services for business activities that are VAT taxed, you can request for a VAT refund in the Netherlands.

If you wish to find out for sure whether you must pay VAT in the Netherlands for foreign services, consult the Dutch-language Services in and from abroad tool from the Dutch Tax and Customs Administration.