BTW(Belasting over de Toegevoegde Waarde)

BTW (Belasting over de Toegevoegde Waarde) is the Dutch abbreviation for Value Added Tax (VAT). It's a consumption tax charged on the value added to goods and services at each stage of the supply chain, ultimately paid by the end consumer. In the Netherlands, BTW is administered by the Belastingdienst (Dutch Tax Authority).

The Dutch BTW system uses three main tax rates: 21% (algemeen tarief) for most goods and services, 9% (verlaagd tarief) for essential items like food, books, and medications, and 0% (nultarief) for exports and certain intra-EU transactions. Businesses registered for BTW must charge the appropriate rate on their sales and can deduct BTW paid on business purchases.

Businesses with annual revenue exceeding €20,000 must register for BTW (as of 2025, reduced from the previous €25,000 threshold). Once registered, businesses must file quarterly or monthly BTW returns, reporting both the BTW they've charged (output tax) and the BTW they've paid on business expenses (input tax). The difference is either paid to or reclaimed from the Belastingdienst.

For cross-border transactions within the EU, special rules apply. B2B sales to other EU countries typically use the reverse charge mechanism (BTW verlegd), where the buyer accounts for VAT in their country. B2C sales may fall under the One-Stop-Shop (OSS) system for simplified VAT compliance across EU member states.