VAT Filing: The Basics
If your turnover exceeds the exemption (€20,000 for services, €10,000 for goods), you are VAT liable. This means you must calculate, collect, and remit VAT.
Step 1: Calculate VAT
The standard rate is 21%, the reduced rate 9%. Calculate how much VAT you received from customers on your turnover.
Step 2: Deduct Input Tax
VAT you paid yourself on business purchases (input tax) can be deducted. Keep all your invoices with VAT.
Step 3: File Return
Log in to MijnBelastingdienst Zakelijk and complete the return. Usually you do this quarterly, sometimes monthly.
Common Mistakes
- Claiming private expenses as business
- Applying incorrect VAT rate
- Forgetting to deduct input tax
- Filing too late (penalty!)
Small Business Scheme
Staying below the turnover threshold? Then you can opt for the small business scheme (KOR). You don't have to charge VAT, but you also can't reclaim input tax.
Tip: Start with a good accounting tool that automatically tracks VAT. This saves a lot of time and prevents errors.
