How to Apply for a Dutch VAT Number Without Setting Up a Dutch Company
Are you looking to expand your ecommerce business into the Dutch or EU markets but don’t want to set up a Dutch company? If so, you’ll likely need to apply for a Dutch VAT registration.
Fortunately, it is possible to get a Dutch VAT number without establishing a local business, as long as you meet certain conditions
In this post, we’ll explain what Value Added Tax (VAT) is, the requirements for obtaining a Dutch VAT number, and outline typical scenarios where companies need a Netherlands VAT ID.
We’ll also guide you on how to easily check your VAT number.
What is VAT in the Netherlands?
VAT (Value Added Tax) is a consumption tax applied to goods and services in the Netherlands.
As a foreign entrepreneur selling products to Dutch customers or operating within the EU, you are required to charge VAT and submit the appropriate returns.
The Dutch VAT rate is generally 21%, although lower rates apply for specific goods and services
Requirements for Applying for a Dutch VAT Number Without Setting Up a Dutch Company
Even if you don’t establish a Dutch entity, you might still need to register for VAT. Here are the requirements for registering for a Dutch VAT number as a foreign business:
1. Your business conducts taxable transactions in the Netherlands. This includes selling goods or services to Dutch customers.
2. You store goods in a Dutch warehouse. If your company holds inventory in the Netherlands, you’ll likely need to register for VAT.
3. You import goods into the Netherlands or other EU countries. Companies involved in import/export to the Netherlands often require a VAT number.
4. You exceed the EU distance selling threshold. If your sales across EU countries exceed €10,000 annually, you’ll need to register for VAT.
To get a Netherlands VAT ID, you must fill out the “Registration of Foreign Businesses” form with the Dutch Tax Authorities.
Once approved, you will receive a VAT number, which you can then use to issue invoices that include Dutch VAT.
Article 23 and VAT Deferral on Imports
Non-EU companies importing goods into the Netherlands can benefit from Article 23 of the Dutch VAT Act.
Under this scheme, businesses can defer the payment of customs VAT at the point of entry (clearance) and instead pay it during their regular VAT return filings.
This can significantly improve cash flow, as VAT doesn’t need to be paid immediately upon import, and instead, is handled within the VAT reporting cycle.
If you want to find out whether your Dutch company is eligible to apply for an Article 23 license, please contact us for more details.
Typical Scenarios for Registering for Dutch VAT
Here are some common situations where foreign companies need to register for VAT in the Netherlands:
1. Import and Export
A company from South Korea wants to sell its products to Dutch customers and uses a warehouse in the Netherlands for distribution. Since the goods are stored locally and sold to Dutch private individuals, the company must register for Dutch VAT.
2. Selling via Ecommerce
A US-based ecommerce company is selling products online to customers in the Netherlands. Although the business does not have a Dutch office, once its sales in the EU exceed the €10,000 threshold, it must apply for a Dutch VAT number.
3. EU Distance Selling Threshold
Your UK business sells goods across different EU countries, and the total value of your sales exceeds the EU-wide threshold of €10,000.
To comply with EU VAT laws, you will need to register for VAT in at least one EU country, such as the Netherlands.
How to Look Up a Netherlands VAT Number
Once you receive your VAT number, you’ll want to verify that it is valid for use.
To perform a Netherlands VAT number check, you can use the official VAT number verification tools provided by the European Commission.
Simply enter the VAT number in VIES VAT number validation to ensure it is active and valid.
How to Invoice with a Dutch VAT Number
When issuing an invoice with VAT to your Dutch customers, it’s important to include the following details:
- Your company’s Netherlands VAT ID (Dutch VAT number)
- The VAT amount charged (typically 21%)
- The total invoice amount including VAT
Make sure your invoice complies with the Dutch VAT tax regulations to avoid issues with VAT reporting.
Ready to Apply for a Dutch VAT Number?
Expanding your business into the Dutch market without setting up a local company is possible, as long as you handle VAT registration properly.
If you meet any of the criteria above, applying for a Dutch VAT number is essential to comply with Dutch sales tax laws.
Curious whether you are eligible to apply for Dutch VAT number, fill in a VAT information collection form today for help with your VAT registration process, and start selling to the Dutch and EU markets with confidence!
Frequently Asked Questions
Yes, it is possible to register a dutch VAT number using your foreign entity, please send an VAT information inquiry form to provide us with your details
Once we have received all the information and doucments required, it will takes 2 weeks.
Once your foreign company has obtain a dutch VAT number, you can then register the EORI number, it takes 2 to 3 working days.
You can check VAT numbers of a dutch company or companies registered in the EU on this website VIES system.
.
f you’re selling products to Dutch customers but not storing goods in the Netherlands, you may still need to register for VAT, especially if your sales exceed the EU distance selling threshold of €10,000 per year.
When invoicing Dutch customers, your invoice must include specific information to ensure that the requirements are met:
- Dutch VAT number.
- The VAT rate charged (usually 21%).
- The amount of VAT in euros.
- The total invoice amount including VAT.
Make sure to keep accurate records of these invoices, as you’ll need them when filing your VAT returns with the Dutch Tax Authorities. This ensures your VAT reporting is compliant and avoids any penalties.
Confused with all the information available online?
-
Change of address of a Dutch B.V.
A quick and easy guide to changing a dutch company address
-
Appointment of a director of dutch company
A quick and easy guide to appointing of a dutch director and file it at the Dutch company house
-
Resignation of a director of a dutch company
A quick and easy guide to removing a dutch director and file it at the Dutch Company House
-
Download company extracts
A quick and easy guide to conducting a dutch company search.