VAT treatments

Step by step

1. 1Use 21% or 9% only when that rate applies to the supply. Do not treat 0%, Exempt and No VAT as synonyms: their tax basis and reporting differ.
2. 2For EU trade, first determine whether the customer is a business or consumer and whether goods or services are supplied. Validate a foreign VAT number and retain suitable evidence where required.
3. 3Under reverse charge, the supplier does not charge ordinary Dutch VAT; the customer reports VAT due and deducts it only to the extent permitted.
4. 4For purchases from another EU country, VAT may be reverse-charged to you. These amounts enter the Dutch return even if deduction makes the net amount zero.
5. 5Foreign VAT, import VAT, private use and margin each have their own conditions. Never choose a treatment solely from an account name or earlier example.
6. 6Have a non-standard or mixed situation assessed before posting, then apply the decision to each relevant line.

What is on the screen?

• 21%, 9%, 0%, exempt or no VAT
• Domestic, EU or outside the EU
• Goods or services; business or consumer
• Reverse charge, import, margin and private use

What happens next?

The selected treatment controls calculation and reporting but does not replace evidence or tax advice. German VAT on a fuel receipt, for example, is not Dutch input VAT; a separate foreign refund procedure may be available.

Continue reading