VAT OBLIGATIONS IN THE NETHERLANDS

How is the tax period determined in The Netherlands? 

Monthly/Quarterly/Yearly

Your company has to report its VAT position by filing periodical VAT returns on a quarterly basis [standard tax period]. Monthly reporting period can be opted for [or imposed by the tax authorities] if the VAT payable per quarter exceeds € 15.000. Yearly reporting period can also be opted for if payable VAT balance does not exceed € 1.883 a year.

When should periodical VAT return be filed?

Periodical VAT returns must be submitted by electronic means to Dutch VAT authorities before the end of the month [last day of N+1] following the tax period. However, for foreign taxpayers not established in the Netherlands but registered for VAT purposes in this country, a two-month period applies [last day of N+2].

VAT Directive

The tax period shall be set by each Member State at one month, two months or three months. Member States may, however, set different tax periods provided those ones do not exceed one year. The VAT return shall be submitted by a deadline to be determined by Member States. That deadline may not be more than two months after the end of each tax period.

Is this requirement laid down in the country and what is the filing deadline?

Your company is not required to file any summarizing annual VAT return in the Netherlands.

VAT Directive

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year. That return shall provide all the information necessary for any adjustments.

 

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement [ESL] must be drawn up for each calendar month provided the threshold of € 100,000 of intra-EU transactions per quarter has been exceeded [01/01/2016: € 50,000]. Otherwise, periodicity is determined on a quarterly basis. ESL must be filed by electronic means before the last day of the month following the reporting period [month/quarter] to which it relates.

VAT Directive

The recapitulative statement shall be drawn up for each calendar month. However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency. The recapitulative statement shall be submitted within a period not exceeding one month.

What is the payment deadline?

The VAT due should be paid by filing deadline for the VAT return to which it relates.

Are interim payments required?

Interim payments are not required.

VAT Directive

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. Member States may, however, set a different date for payment of that amount. Member States may require interim payment to be made.

 

Is any VAT credit automatically carried forward or refunded?

A VAT credit is automatically refunded by Dutch VAT authorities. No carry-forward mechanism.

 

VAT Directive

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.