How to apply for a Dutch VAT number
The first thing you need to do is to register your company with the Trade Register via the Chamber of Commerce. Your company information will be automatically transferred to the tax authorities.
When registering the BV with the Chamber of Commerce you will receive an RSIN number. This number is also on the extract of the Chamber of Commerce. This RSIN number becomes the fiscal number of the BV. The VAT number is derived from this number, namely with the addition NL and B01 at the end. However, this number must be activated, and we can perform this process for you.
To assess whether the BV is an entrepreneur for VAT, the following matters are taken into account:
A taxable person for VAT is any person who, in the pursuit of economic activity, provides, regularly and independently, for-profit or not, a supply of goods or services, wherever the economic activity is carried on.
The definition includes 4 essential elements:
Natural person, legal person or associations insofar as they carry out economic activities
All activities of the producer, trader or service provider are envisaged (except for exempt transactions).
Regularly exercised activity:
To be a taxable person, the transactions listed in the Code must be performed by him/her regularly. Only through succession do actions become an activity. The regular occurrence of the actions in the form of an activity is not clearly defined.
Determining whether an action is part of a regular activity or of an accidental nature is assessed on the basis of the facts.
The activity must be carried out on an independent basis and not in employment. There should be no bond of subordination to another person.
The criteria the tax office uses for VAT assessment can include:
- The company activities (and it’s risk for potential VAT misuse)
- Where is the company buying their goods?
- Where is the company selling their goods?
- Does the company have any activities in the Netherlands?
- Does the company have any staff, directors or operations in the Netherlands?
- Where is the company marketing itself?
If the BV meets the tax inspector assessment, there is a tax liability for VAT, and the Tax and Customs Administration will issue a VAT number. This international VAT number is crucial for international transactions with other legal entities within the EU since a valid number leads to an invoice without VAT. (a so-called intra-community transaction). It is also important to always check the validity of the VAT number of your counterparty since the normal VAT rate applies if the number is invalid. The VAT number can be checked using the European Vies VAT number validation website.
Where to use the VAT number?
Foreign citizens and businesses, as well as local citizens who apply for a VAT number with the Dutch authorities, must display this number on every invoice they provide. They must also file VAT reports with the local tax office. All invoices are required to include certain information about the VAT, such as:
The VAT number of the client;
The VAT ID number of the seller;
Information about the items/services sold;
The amount of VAT (net);
The VAT rate;
The amount of VAT charged;
The total amount including VAT.
The whole process of applying for a VAT number can be completed within 5 working days. Our accounting and VAT specialists file- and consult hundreds of such VAT requests per year. Our specialists ensure the best possible service to represent your company with the tax authorities.
You should also be aware that if your company is dissolved, you must also contact the tax authorities as the VAT number must be deleted and the company will be de-registered.