When starting a business in the Netherlands, you’ll quickly encounter a few key terms that might seem confusing at first: KVK Number, VAT Number, and VAT Identification Number. 

Each of these numbers plays an important role in making your business compliant with Dutch laws and regulations, and they serve specific purposes depending on the nature of your operations. 

In this blog post, we’ll break down what each of these numbers is, what they’re used for, and who needs them.

What is a KVK number (Chamber of Commerce Number)?

The KVK number, or Kamer van Koophandel number, is your business’s unique identifier in the Netherlands. Issued by the Dutch Chamber of Commerce (Kamer van Koophandel or KVK), this number confirms that your business is officially registered in the Dutch Trade Register.

Purpose of the KVK number

The KVK number serves as a critical identifier for your business. It is required for:

• Official contracts and agreements.
• Invoices sent to clients and customers.
• Business correspondence, such as letters and emails.
• Websites and online webshops.
• Communication with Dutch authorities.

Essentially, it is your business’s fingerprint in the Dutch business world. Without it, your company cannot operate legally in the Netherlands.

Who needs a KVK number?

Every business operating in the Netherlands is required to have a KVK number. Whether you’re a freelancer (eenmanszaak), a partnership (vennootschap onder firma), or a limited company (BV), you must register with the KVK to receive this number.

What is a VAT number (Omzetbelastingnummer)?

The VAT number, or Omzetbelastingnummer, is issued by the Dutch Tax Authority (Belastingdienst) when you register your business for VAT (Value Added Tax). This number is specifically used for communication between your business and the Belastingdienst regarding VAT matters.

Formats of VAT numbers

The format of VAT numbers vary depending on your business’ structure:

• Eenmanszaak (sole proprietorship): [9-digit BSN (citizen service number)] B [2 sub-digits]
• Other business types (e.g., partnerships or limited companies): [9-digit number] B [2 sub-digits]

Purpose of VAT numbers

A VAT number is used for administrative purposes and compliance with Dutch tax laws. It’s primary purpose is for:

• Submitting VAT returns and other filings to the Belastingdienst.
• Any direct correspondence with the tax authority.

Unlike the VAT ID number (explained below), the VAT number is not typically shared with clients or listed on invoices.

Who needs a VAT number?

All businesses operating in the Netherlands, and subject to VAT, are required to have a VAT number. This includes most businesses, regardless of size or industry.

What is a VAT Identification number (BTW-Identificatienummer)?

The VAT Identification Number, also known as the BTW-identificatienummer in Dutch, is different from a standard VAT number. This number is used specifically for invoicing and compliance with EU VAT regulations, especially if your business engages in cross-border transactions within the European Union.

Formats of the VAT Identification number

The VAT Identification number follows a specific format depending on your business type:

• Eenmanszaak (sole proprietorship): NL [random 9-digit number] B [2 sub-digits]
• Other business types (e.g., partnerships or limited companies): NL [9-digit VAT number] B [2 sub-digits]

Purpose of the VAT Identification number

This number is required for several key purposes:

• Invoicing: All invoices issued to clients within the EU must include your VAT ID number to comply with tax regulations.
• Cross-border transactions: It is used to process VAT for cross-border trade within the European Union.
• Website and webshop compliance: Businesses with an online presence, especially those selling products or services, must display their VAT ID number on their websites and in their terms and conditions.

Who needs a VAT Identification number?

Any business operating within the EU that issues invoices or engages in cross-border transactions must have a VAT ID number. It is a requirement for all businesses registered for VAT in the Netherlands.

Key differences between KVK, VAT Number and VAT ID numbers

To recap, here’s a quick summary of the main differences between these not-too-complex identifiers:

Xolo’s thoughts and tips for KVK, VAT and VAT ID numbers

Understanding the differences between these three key business identifiers is essential for any entrepreneur starting or operating a business in the Netherlands. The KVK number ensures your business is officially registered, the VAT number allows you to communicate with the tax authority, and the VAT ID number keeps your business compliant with invoicing and EU regulations.

If you’re unsure about which numbers you need or how to apply for them, don’t hesitate to reach out to the KVK or the Belastingdienst. Starting a business can be complex, but with the right information and Xolo by your side, you’ll be set up for success in no time!