General EU businesses (8th Directive)
Dutch VAT is known as “Belasting over de Toegevoegde Waarde” (BTW).
A foreign taxable person is entitled to recover Dutch VAT if the following conditions are satisfied:
- The business is not registered, liable or eligible to be registered for VAT in the Netherlands;
- The business does not have residence, a seat or fixed establishment for VAT purposes in the Netherlands.
- The business has not carried out any taxable supplies in the Netherlands, except for:
- Certain tax-exempt cross-border transportation services from/to non-EU countries;
- Supplies for which the reverse charge mechanism applies;
- Supplies subject to occasional taxation; or
- Electronically provided supplies where the foreign taxable person opted for application of the special regime for non-established taxable persons supplying electronic services to non-taxable persons.
VAT cannot be recovered on:
- Supplies of goods and services that are not used for business purposes;
- Supplies and services acquired or imported in connection with an exempt business activity;
- Food and drinks in restaurants, hotels and cafes;
- Business entertainment in excess of EUR 227 per year per person;
- Employee benefits in-kind in excess of EUR 227 per year per person;
- VAT on costs for the lease or rental of cars (these are limited to an 84% VAT refund (a 16% correction is made for private use)).
If the application relates to a period of less than one calendar year but not less than three months, the amount for which application is made may not be less than EUR 400; if the application relates to a period of a calendar year or the remainder of a calendar year, the amount may not be less than EUR 50. A claimant can make a maximum of five claims (per member state) annually.
The application must cover a period of not less than three consecutive calendar months (e.g. from 1 January to 31 March) in one calendar year and not more than one calendar year. To have the right to appeal the decision of the tax authorities, the claim must be submitted within nine months after the end of the calendar year (i.e. before 1 October) in which the VAT was incurred. However, it is possible to submit a claim within five calendar years from the end of the calendar year in which the VAT was incurred, but in this case, no appeal can be filed.
A claimant can submit more than one refund claim for the remainder of a calendar year. It is also possible to add the additional invoices in a subsequent refund claim for the same year (provided the deadlines are met). It is not possible to add additional invoices to the refund claim for the following calendar year. If the invoice cannot be reported in the same calendar year, the claimant will have to appeal a decision received for the relevant period.
Want to know more?
Contact our advisers and find out more about reclaiming your VAT/tax.