All about Dutch Tax & Accounting

Confused about taxes in Netherlands? All you need to know about dutch tax and accounting. Read our complete guide on dutch tax system.


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    dutch tax and accounting

    Why Dutch Tax & Accounting Support is important?

    Before you start your organization in the Netherlands, you need to have a clear understanding of the Dutch tax laws and the managerial necessities. ODINT consulting aims to offer quality and specific types of assistance. Our core business is to give all-in administrations in our primary locale. It is also advisable to have a full overview of the Dutch tax system. Each organization in the Netherlands should consider the following:

    • If the organization is taxable in the Netherlands in any case
    • The Company should enroll for VAT, and how to file VAT returns
    • Know the effective method to manage European purchases and sales
    • Know-how and when to file a company’s financial statements
    • The tax requirements engaged with appointing staff individuals (or potentially the arrangement of a shareholder as director)
    • The tax treatment of incoming and outgoing profits
    • Invoice necessities

    Whether you are searching for accounting administrations in the Netherlands, tax filings, or any other tax-related counselors, our expert team is accessible for help for any kind of assistance. Get in touch to discuss in depth.

    As an entrepreneur, you need to have a sound comprehension of the Dutch tax memorandum outline and we can give you a completely thorough breakdown of it. We will help you so that your organization profits by the business structure and we can help you discover your orientation in the Dutch fiscal system.

    ODINT consulting is pleased to deliver top-notch administrations like assisting you with your inquiries, locale regulations, bank account, and Dutch VAT number applications. We cover inside and out articles on our blog.

    Recently we have encountered a few changes as far as financial commitment in organizations. Under European influence, we have additionally experienced new transparent guidelines for accounting. Therefore, we need to distinguish each new customer under the Dutch Anti- Money Laundering guidelines. Nonetheless, this didn’t stop us from giving our clients outstanding service with regards to their accounting matters. Want to know more about this? Read here.

    Use of Administration

    As mentioned before, each organization is extraordinary and unique in its particular manner. This also applies to the tax position and necessities of each organization. You may plan to incorporate a subsidiary in the Netherlands or think about a branch registration. Or on the other hand, you may be wanting to take over a current organization, or payroll staff.

    As mentioned before, each organization is extraordinary and unique in its particular manner. This also applies to the tax position and necessities of each organization. You may plan to incorporate a subsidiary in the Netherlands or think about a branch registration. Or on the other hand, you may be wanting to take over a current organization, or payroll staff.

    What Should You Consider?

    Before starting the process of forming a company in the Netherlands it is essential to be familiar with a portion of the fundamental ideas around rules and practices identified with the assessment and administrative necessities of a company in the Netherlands.

    Companies in the Netherlands are taxed based on residence, which means they must have a registered office in the nation to be subject to corporation tax on worldwide revenue. Foreign firms will be taxed, but only on the money, they create in the Netherlands. It is important to prepare Financial Statements and to file a corporate tax return.

    Because the private limited liability company (BV) is the most popular type of business in the Netherlands, many overseas investors are interested in learning more about its taxes. Our Netherlands Tax Calculator Services will come in helpful to make things easier.

    How to Apply for a Value Added Tax Number in the Netherlands?

    VAT is also called sales tax. This means that it is an assessment that is required on the value that a business person adds to an item or administration. In other words: the contrast between the price tag in addition to cost and the selling cost.

    Unless a business person is exempt from this, each business person should charge this VAT on their sales, or their turnover, and pay it to the tax authorities.

    Obtaining a VAT number in the Netherlands can be challenging, if your Dutch organization isn’t yet absolutely operational in the Netherlands, or has no local board individuals or staff yet.

    In a standard circumstance, where a Dutch organization is incorporated by a Dutch national, a new starting organization will get the VAT number about seven days after registering with the Chamber of Commerce. The business person doesn’t have to go to the Tax Authorities for this or file a separate application form.

    For non-Dutch business people, there can be additional requirements, regardless of whether the company is overseen by European Union nationals. The following questions should be asked:

    • Are you an entrepreneur who isn’t set up in The Netherlands?
    • Do you supply goods or administrations to The Netherlands?
    • If your answer is “yes” with the above questions at that point you are an entrepreneur in terms of VAT. For this case, you need to file a tax return and you may likewise be needed to pay VAT

    This can create an obstacle, for some organizations, a VAT number is fundamental. Without a VAT number, they can’t ‘reverse charge’ VAT on European sales and purchase, or guarantee back any paid VAT on purchase.

    After the previously mentioned questions are answered with “yes” we can wind up that you are a foreign entrepreneur associated with VAT in the Netherlands. This means that you are needed to enlist with the Dutch tax authorities. The form that should be utilized can be found here.

    How to Apply for an EORI Number in the Netherlands?

    To process the import of goods at customs (port or air terminal in The Netherlands), it tends to be needed to have an EORI number (customs ID number).

    In most cases, you would apply for an EORI number, when your VAT number is active. A business can just have one active EORI number inside the European Union except if the business has also registered for a different VAT number.

    It requires approximately 3-5 working days to activate the EORI number, in case your organization’s VAT number is as of now active.

    Asserting refund of VAT

    For foreign companies there are two types of circumstances when they want to claim a refund of VAT:

    • The company is set up in an EU country;
    • The company is set up in a non-EU country.

    In the two situations, VAT can be claimed.

    Benefits of Registering your Company in India

    • Registration helps in generating more capital through reliable sources (banks & institutional lenders)
    • The company becomes a separate entity and if anyone sues the company you will not be affected directly
    • Your liability towards the company is limited to the number of shares you own
    • Your ownership and liabilities can be transferred from yourself to another person
    • You enjoy tax benefits for Directors and other employees
    • Hiring professional management and ownership help the company maximize its potential
    • It becomes easier to build brand reputation and attract genuine leads
    • Scalability and expansion becomes easier
    • Improved relationships with vendors, suppliers, industry associations, and customers
    • Distinct corporate identity and existence
    • Ensures perpetuity and continuity
    • A company becomes more transparent and trustworthy in the eyes of the government

    Type Of Taxes In The Netherlands

    Everyone in the Netherlands has to pay taxes. Business owners, an individual, or even a multinational corporate owner, all have to pay taxes, Taxes such as income tax, turnover or profit, property tax or others too. There are numerous tax schemes available in the Netherlands however everyone has to pay tax to the government of the Netherlands.

    How to file tax in Netherland

    Filing a tax file in the Netherlands for a business person or even for a corporate will not be a hectic or a big problematic situation, as the business will get registered with the Tax and Customs Administration automatically once you register it with the Netherland Chambers of Commerce in the commercial registration. If the company or corporate has any type of permanent establishment in the county of the Netherland then it becomes highly important for them to register themselves as soon as possible or else legal actions against them could take place.

    If the representative of the company or the firm is not listed under the Dutch Commercial Register which means that they does not have any permanent establishment in the Netherland and they continue to provide service on the behalf of the country, then they have to register themselves with the Tax and Customs Administration of the Netherland to ensure that their company is legally working and is safe to invest or work with them.

    Tax Conditions For Foreign Business

    If the person already owns a business company or firm but it is outside the Netherland country and wishes to open a branch within the country of Netherland, then the person has to come in contact with the NFIA i.e; Netherland Foreign Investment Agency. The person has to shift from a sole proprietorship, which is only foreign sole proprietorship is not valid or solid evidence of business structure in the Netherlands.

    You have to move to a sole proprietorship in order to work in or with the Netherlands, you have to show evidence that you are registered in your country of origin as a sole proprietor.

    Import Required And Documentation While importing goods into the Netherlands from outside the European Union (EU), you will usually have to pay tax, usually called import duties, such as VAT and in some cases excise duty, consumption tax, or other levies.

    Import duties Import duties are levied on imported goods. The Dutch Customs authorities levy and collect the duty and transfer the sums collected to the EU. Member states are entitled to retain a portion of the import duties that they collect to cover collection costs.

    Common Customs Tariff All European Union members apply the same CCT, but different rates are applied on the different products depending on the nature and source of origin, economic sensitivity, and much more. As sometimes when goods are imported from other developing countries, then they have to pay zero or reduced import duty. But to claim that they have to show a certificate of origin form or invoice declaration.

    Protection against low prices Levying import duties on imported goods is a way of protecting countries against cheaper products from third countries. Companies in some countries can produce their products more cheaply due to lower wages, costs, and prices. Adding import duties to these products makes them more expensive, thereby narrowing the price difference and enabling countries to compete more effectively with producers in third countries

    Export policy for goods The only restriction is to export cultural artifacts, specimens of flora and fauna which are threatened with extinction, and war material, arms, and others. Although the Netherlands has a modern and vast road network, 139,124 kilometers of roads run through the Netherlands, including 3,654 kilometers of motorways. The Ministry of Infrastructure and the Environment is responsible for both maintaining and improving the export condition. It plans to expand on the capacity of waterways, bridges, and berths and improve the quality of its ports. In doing so the Ministry aims to make inland waterways a more significant feature of Dutch domestic transport and reduce the burden on road freight.

    Note: Transport through the Netherlands via inland waterway is the most economical and environmentally friendly option because of the small size of the country.