What is the difference between a VAT exemption and a VAT rate of 0%?
Article ID: 145 | Last Updated: Wed, Aug 10, 2016 at 6:46 PM
What is the difference between an exemption and a rate of 0%?
If goods or services are exempted from VAT, the VAT on the expenses made to produce these goods or services can't be claimed back. If the goods or services are taxed with 0%, the VAT on the related expenses may be claimed back though. The same is applicable if you export your goods to another country. The goods may leave the Netherlands without VAT, but you can claim back the VAT on your expenses, which is beneficial for your liquidity.