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The Netherlands has three main VAT (BTW) rates:

• 21% (Standard Rate): Applied to most goods and services.
• 9% (Reduced Rate): For specific essential goods and services like food, books, and medicine.
• 0% (Exempt or VAT-Free): For certain categories, including exports to non-EU countries and specific medical and educational services.

When should I apply the 21% VAT rate?

• Use the 21% VAT rate for most products and services, such as professional services, electronics, clothing, and general business services.
• This standard rate applies unless a product or service qualifies specifically for the reduced 9% rate or exemption.

When do I use the 9% VAT rate on my invoices?

• The 9% rate is intended for essential items to make them more affordable. Use this rate for:
• Food and beverages (non-alcoholic)
• Books, newspapers, and magazines
• Pharmaceuticals and medical devices (certain items)
• Certain labor costs for home renovation (subject to criteria)
• Check the VAT guidelines FAQs if you’re unsure whether your product or service qualifies for the 9% rate.

In which cases should I use the VAT-exempt (0%) rate?

• The 0% rate is applied when VAT does not need to be charged. Common examples include:
• Exports outside the EU: Goods and services provided to customers outside the European Union.
• Intra-community supplies: Sales to VAT-registered businesses in other EU countries (the customer accounts for VAT in their country).
• Specific sectors: Medical, educational, and financial services are generally exempt from VAT.

Ensure you include the customer’s VAT number on invoices for intra-community supplies.