Calculating VAT in the Netherlands: 21%, 9% and 0% explained
VAT (in Dutch: btw, or omzetbelasting) is calculated over the amount excluding VAT. The Netherlands has three rates. Below you will see which rate applies when, and how to work out the amount.
Rather not do the sum yourself? Enter an amount in the VAT calculator and you immediately see the amount excluding VAT, the VAT itself and the amount including VAT.
The three VAT rates
- 21% (standard rate): the default for most goods and services.
- 9% (reduced rate): among others for food, books, medicines and a number of services such as hairdressers and bicycle repairs.
- 0% rate: mainly for supplies going abroad. Note: 0% is not the same as “exempt”.
Not sure which rate applies? Check with the Belastingdienst, because it differs per type of product or service.
Calculating VAT from an amount excluding VAT
If you have an amount excluding VAT, multiply it by the rate:
- Amount excluding VAT: 100.00
- VAT at 21%: 100.00 x 0.21 = 21.00
- Amount including VAT: 121.00
At 9% that becomes 100.00 x 0.09 = 9.00, so 109.00 including VAT.
Working back from an amount including VAT
If you only have the amount including VAT, calculate backwards:
- At 21%: divide by 1.21 for the amount excluding VAT.
- At 9%: divide by 1.09.
Example: 121.00 including VAT / 1.21 = 100.00 excluding VAT, so 21.00 of VAT. Or let the VAT calculator do the reverse sum.
Rounding: per rate, over the total
On a correct Dutch invoice you calculate the VAT per rate over the summed amount of all lines carrying that rate, and round after that. So you do not round per line and then add up. This avoids differences of a cent.
Let it be calculated for you
In factuurmaken you pick the rate per line (21%, 9% or 0%) and the VAT is calculated per rate and rounded correctly, automatically. What else has to be on the invoice is covered in What must a Dutch invoice contain.