How vat / sales tax works in Netherlands
Dutch VAT (btw) defaults to 21% on goods and services, with businesses charging output tax, deducting input tax, and filing quarterly returns with the Belastingdienst.
A 9% reduced rate covers food, water, books, medicines, passenger transport, hotel stays, and cultural and sporting services, while exports and intra-EU B2B supplies take 0%.
Financial, insurance, health, education, and childcare supplies are largely exempt without input recovery, and the KOR lets qualifying small traders skip VAT charging below the turnover ceiling.
Tax rates at a glance
- Standard VAT
- 21%
- Reduced VAT
- 9%
- Zero rate
- 0%
- Exempt supplies
- Exempt
- Small-business KOR
- EUR 20,000
- E-books and press
- 9%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersFreelancersSaaS foundersExpatsCross-border traders
Watch out for
- Proposals to lift the 9% rate surface regularly without passing, so hospitality and culture businesses should still model a higher-rate scenario in long contracts.
- Exempt status blocks input VAT recovery, which makes finance, health, and education-adjacent pricing structurally different from 9% or 0% supplies.
- KOR traders cannot reclaim input VAT and face a three-year lock-in rhythm on exit and re-entry, which punishes capital-heavy startups that elect too early.
- Platform and OSS rules decide more liability than domestic rates for sellers shipping B2C across the EU from Dutch stock.
Frequently asked questions
What is the VAT rate in the Netherlands?
The standard Dutch VAT rate is 21% in 2026, with a 9% reduced rate for food, books, transport, stays, and culture, and 0% for exports and qualifying intra-EU B2B supplies.
What is the KOR small-business scheme?
The KOR exempts qualifying small traders below the turnover ceiling from charging VAT. The trade-off is no input VAT recovery plus lock-in rules on leaving and rejoining.
Are e-books taxed at 9% in the Netherlands?
Yes. Books and periodicals including digital editions fall under the 9% reduced rate, unlike most digital services that carry 21%.