Knowledge Base

Welcome to the Expatax Knowledge Base containing hundreds of answers to questions we received about topics concerning tax, payroll, accounting, legal, business etc. related to the Netherlands. Search in our Knowledge Base or browse the different categories. Expatax is a Dutch tax and accounting firm specialized in assisting international workers, freelancers and companies. Don't hesitate to contact us if you need assistance or check our website.

VAT on online education

We are thinking of setting up our company in the Netherlands and our question is of vat nature. What is the vat for online educational services? Both teachers and students will be based most likely outside the netherlands.

This is a complex situation.
Official institutions which offer education are VAT exempted. The same is applicable to institutions or companies which offer professional education and are registered in the Register Short Professional Educatio: If you will not register you will have to charge VAT.
Next step is to determine who your client is. If your client is living in the Netherlands the standard rules which I mentioned above are applicable. If your client is however living outside or based outside the Netherlands this can be different. Then we have to make a difference again between individuals and companies and whether they are living or based inside or outside the EU. And of course we have to determine how the service you offer is categorized.
EU regulations determine that online education is classed as an electronic service. For electronic services again special rules apply.
Your client is:
- a business based in another EU country: you charge 0% VAT, your client will declare VAT in its own country
- an individual living in another EU country: you charge 21% VAT, unless you are registered for professional education (0% VAT) 
- a business based outside the EU: you charge 0% VAT, you need to check how VAT will be declared in the country of your client
- an individual living outside the EU:  you charge 0% VAT, you need to check how VAT will be declared in the country of your client
So when you let your students register it is important you have all their details. Based on the information they provide you will have to determine the VAT position which can be different every time. It becomes more complicated if your client is based outside the EU. Make sure that if your client is a business that you have their VAT number.
Expatax can assist you with setting up the business, with the VAT registration and the daily accounting.
Attached Files
There are no attachments for this article.
There are no comments for this article. Be the first to post a comment.
Security Code Security Code
Related Articles RSS Feed
My business is not VAT registered. Can I still reclaim VAT we have paid for goods/services?
Viewed 8090 times since Tue, Nov 29, 2011
For which expenses can I claim back the VAT?
Viewed 16962 times since Sun, Feb 24, 2013
How can I get a time extension for a VAT return?
Viewed 3443 times since Mon, Dec 12, 2011
What is the difference between a VAT exemption and a VAT rate of 0%?
Viewed 14852 times since Tue, Dec 13, 2011
Vat for musician - did the vat rate of 6% change too?
Viewed 14476 times since Thu, Oct 4, 2012
What is the VAT rate on public transport?
Viewed 14552 times since Fri, Apr 5, 2013
How can we verify and check a VAT number of a company we do business with?
Viewed 9168 times since Thu, Feb 7, 2013
How to correct a mistake in VAT tax return and ICP statement?
Viewed 1350 times since Mon, Aug 3, 2015
VAT rate increases in 2012
Viewed 2459 times since Fri, Aug 31, 2012
What is the VAT rate in the Netherlands for men‘s shirts?
Viewed 4281 times since Thu, Mar 29, 2012