Once you have a VAT number, you're required to file a VAT return (btw-aangifte) with the Belastingdienst. That applies to nearly every founder and small business in the Netherlands, whether you just started or have been running your company for years. You report how much VAT you charged clients and how much you paid to other businesses yourself. The difference either gets paid out or refunded.
A lot of founders find this one of the more tedious parts of running a business. Not because the rules themselves are necessarily complicated, but because it's easy to lose track: which invoices count, which rate applies, and exactly when it's due.
Who has to file a VAT return?
Anyone with a valid VAT number is required to file, even if you invoiced nothing in a given period. In that case, you file a nil return: you simply state there's nothing to report. Skipping it isn't an option, even a nil return has to be filed on time.
Registered under the small business scheme (KOR, kleineondernemersregeling)? Then you generally don't charge VAT and don't need to file, but always confirm this rather than assume it applies to you.
How does the process work?
The steps are broadly the same each time:
- Gather your invoices. All sales invoices (VAT you received) and purchase invoices (VAT you paid) for the filing period.
- Calculate the VAT. The difference between VAT received and paid determines whether you owe money or get a refund.
- File with the Belastingdienst. Done digitally through Mijn Belastingdienst Zakelijk, using eHerkenning or DigiD.
- Pay or claim your refund. Payment follows filing, or a refund if the balance is negative.
Most founders file quarterly, though depending on your situation the Belastingdienst can require monthly or annual filing instead.
The most common mistakes
We see the same pitfalls come up again and again with new clients:
- Missing deadlines. Even a few days late can trigger a penalty, even for a nil return.
- Using the wrong VAT rate. Not every product or service falls under the same rate, and the difference isn't always intuitive to guess.
- Forgetting to reverse-charge VAT. For certain services to clients abroad, the filing works differently than most founders expect.
- Missing deductible VAT. VAT you could have reclaimed on business expenses, left unclaimed for no reason.
The outcome is always the same: penalties, extra hassle with corrections, and the nagging feeling you're missing something. All of it avoidable with the right support.
How Sophy &Co. handles it for you
At Sophy &Co. you don't need to spend another minute worrying about this. Share your purchase and sales invoices with us, that's all you need to do. We handle the rest, from the calculation to filing with the Belastingdienst on time.
That's exactly why we exist: VAT rules and deadlines feel genuinely intimidating to a lot of founders, especially when you're also learning a new tax system from scratch. With us, it doesn't have to feel that way. You run the business, we handle the numbers.
Our clients save an average of up to 10 hours a month on admin, time you can put back into your business. All for a fixed monthly fee, cancel anytime, no surprises later. Our own systems keep costs low and give your bookkeeper more time for you, so you get the attention you'd miss at a traditional firm, for around 60% of the price.
New to Dutch VAT rules as an expat founder?
At Sophy &Co. we help expat entrepreneurs understand this before it becomes a problem. Book a call, no Dutch required, and we can connect you with our network of trusted partners, banks, lawyers, notaries, and other expats navigating the same system.
We're a woman-led, diverse team, both women and men, and proudly LGBTQIA-friendly, speaking English, Dutch, Italian, Chinese, Spanish, Papiamento, German, and some French and Polish between us.
Never file VAT yourself again?
Curious what Sophy &Co. can do for your business? Check our services and pricing, read how it works, or meet the team. Questions? Get in touch for a no-obligation conversation.
Want the official rules? Check the Belastingdienst or the KVK.