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Claiming Refund of VAT in the Netherlands

Claiming Refund of VAT in the Netherlands

Updated on Tuesday 28th August 2018

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Claiming-Refund-of-VAT-in-the-Netherlands.jpgPersons who purchase goods in the Netherlands can claim a refund on the value added tax (VAT) charged to the goods and products they have purchased, as long as they are residents of a country outside the European Union (EU). In the case of VAT returns for natural persons, the minimum shopping threshold is of EUR 50; it is also important to know that the country imposes a VAT applied at the rate of 21%
 
The refund of VAT is also available for corporate bodies, regardless of their country of residence, but it is important to know that there are different procedures available in this case, based on the tax residence of the company. Our team of accountants in the Netherlands can assist foreigners with in-depth advice on the procedure available in this situation. 
 

Claiming refund on Dutch VAT as a EU company 

 
As a businessman resident of the EU, the Dutch legislation prescribes that the refund can be obtained for the purchases concluded in the last 5 years. In order to receive the VAT refund, it is necessary to complete a digital form with the tax authorities in the country in which the company is registered. The document has to be completed prior to each 1st of October of each year. The procedure is comprised of the following: 
 
  • once the document is completed, the tax authorities in the country of residence will send the form to the Dutch Tax Department;
  • the institution will send a confirmation e-mail to the person entitled to the VAT refund
  • the decision regarding the VAT refund will be established in a period of maximum 4 months since the application was sent;
  • once the VAT refund is approved, the person can receive the respective sum of money in a period of ten days since the notification was sent
 

Main requirements for obtaining a Dutch VAT refund 

 
In order to be entitled to VAT refund for purchases concluded in the Netherlands, certain conditions have to be fulfilled. For example, the respective products or services have to be used for business purposes and, furthermore, the products and services have to be used only for activities for which the VAT is charged. Our accounting firm in the Netherlands may provide further information on this matter. 
 
It is important to know that certain categories of goods can’t benefit from tax refunds – such as drinks and food ordered in any type of catering establishment; however, the VAT on accommodation services can be refunded. We invite you to contact our accounting firm in the Netherlands for more details on this subject.