General Non-EU businesses (13th Directive)
Dutch VAT is known as “Belasting over de Toegevoegde Waarde” (BTW).
No reciprocity is required. The business must be a “taxable person.” 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 a 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; or
- VAT on costs for the lease or rental of cars (these will in practice be limited to an 84% VAT refund (a 16% correction is made for private use)).
Minimum amounts GB Business
If the application is for a period covering less than 12 months, the total amount of VAT claimed must not be less than Euro 1000. However, when the application is for the full 12 months of the prescribed year, or there are less than three months remaining in the prescribed year, the amount of VAT claimed must not be less than Euro 1000.
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, unless the period represents the remainder of a calendar year (e.g. from 1 November to 31 December). The application can relate to invoices or import documents not covered by previous applications in respect of transactions carried out during that calendar year.
To have the right to appeal the decision of the tax authorities, the claim must be submitted within six months after the end of the calendar year 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.
The following documents must be submitted with each claim:
- Original invoices/import documents, bills, vouchers, receipts or customs clearance forms;
- A copy of the articles of association;
- A copy of the extract of the Chamber of Commerce (business registration register);
- A letter of authority if a third party submits a claim on behalf of the claimant; and An original certificate of taxable status.
Want to know more?
Contact our advisers and find out more about reclaiming your VAT/tax.