Obtaining your VAT number in the Netherlands will allow you to charge, collect and report VAT on the goods and services you provide as a self-employed person.
Understanding how to obtain your VAT number may be a tad overwhelming at first. Thankfully, this is a process most will only need to go through one time. In this guide, you’ll discover the purpose of a VAT number, the application process, and all essential steps a freelancer (ZZP’er) should take after they’ve received their unique VAT.
Let’s dig in.
How do self-employed persons in the Netherlands use VAT?
In the Netherlands, a VAT number is a unique identifier that allows you to charge, collect and report VAT on goods and services you provide as a self-employed person. For sole-proprietors, VAT numbers not only fulfill a legal requirement but also open doors to operate in the Dutch market with customers and partners who rely on standardized VAT practices.
This unique VAT ID enables freelancers and self-employed professionals to:
- Charge VAT to customers on taxable goods and services.
- Reclaim VAT on certain business expenses, reducing their overall tax burden.
- Conduct business seamlessly within the EU as part of the EU’s standardized VAT system.
Without a VAT number, you may find it challenging to comply with tax regulations and may face obstacles in your day-to-day business operations, especially if you work with other EU countries.
How to apply for a VAT ID as a self-employed person in the Netherlands
Applying for a VAT number is a straightforward part of setting up your business, and it can be done through the Dutch Chamber of Commerce (KVK). Follow these steps to obtain your own VAT number:
1. Register your business with the Dutch chamber of commerce (KVK):
Begin by registering your business, or "Eenmanszaak" (sole-proprietorship), with the KVK. This registration provides the necessary information to Dutch tax authorities to assess your VAT status.
Gather essential information, such as your business name, business activities and contact information, before you visit or complete the process online.
2. Receive your VAT number from the Belastingdienst:
After registering, you will receive two VAT-related numbers from the Belastingdienst:
- a btw-id, which you use on invoices and share with customers and suppliers, and
- an omzetbelastingnummer (ob-nummer), which you use only when filing VAT returns or contacting the tax office.
Both numbers are visible in your Belastingdienst portal and official letters. Always use the btw-id on invoices and keep your ob-nummer private.
3. Check the format and details of your VAT number:
Your btw-ID is a combination of numbers and letters and looks like this
- Country code NL
- 9-digit identifier
- the letter B
- 2 digits (also called subnumber).
Your ob-nummer follows the same structure, without the country code
- 9-digit identifier (If you are self-employed, these are the 9 digits of your BSN).
- the letter B
- 2 digits (also called subnumber).
Make sure your identifiers comply with these formats to avoid any issues during invoicing or reporting.
5 things to do as a freelancer after obtaining your Dutch VAT number
Once you have your VAT number, it's essential to integrate it into your business operations properly. Here’s what you should consider:
1. Update your invoicing practices
- Include your VAT number on all invoices sent to clients or customers within the EU. This is a legal requirement and builds trust with clients.
- Your invoices should itemize VAT separately and specify the applicable VAT rate for each good or service.
2. Understand VAT rates and charge clients appropriately
- The standard VAT rate in the Netherlands is 21%, though some services and goods may qualify for reduced rates of 9%, or even exemptions.
- Familiarize yourself with these rates to ensure your clients are charged correctly, keeping your business fully compliant.
3. Track VAT on purchases and expenses
- With a VAT number, you can reclaim VAT on business-related purchases. Keep detailed records of expenses (such as office supplies, travel, and professional services) to claim VAT refunds and reduce your taxable income.
- Consider using a digital accounting solution to streamline this process––try Xolo!
4. File VAT returns regularly
- VAT returns must be filed quarterly or annually, depending on your business size and structure. These returns report the VAT collected from customers and the VAT reclaimed on business expenses.
- Missing a VAT return deadline can result in penalties, so consider setting reminders or enlisting help from an accountant or tax service to ensure timely submissions.
5. Manage cross-border transactions and VAT
- If you work with clients across the EU, be aware of any specific VAT requirements for international transactions. You may need to apply the reverse-charge mechanism, where VAT responsibility shifts to your client if they're VAT-registered in another country.
- Properly handling cross-border VAT not only keeps you compliant but also prevents unexpected VAT charges for your clients.
Simplify your Dutch VAT management with Xolo
Getting a VAT number is only the first step in managing VAT as a self-employed professional in the Netherlands.
From invoicing clients to tracking VAT returns, remaining compliant can be tough—especially if you’re managing it all by yourself. Xolo provides expert support tailored to the needs of freelancers and solopreneurs, offering a seamless solution for invoicing, expense tracking and VAT filing.
Let Xolo take care of the details so you can focus on growing your business with confidence. Whether you’re just starting or looking to streamline your operations, it’s a great time to learn more about Xolo’s solutions for freelancers in the Netherlands.