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.

What is VAT?

VAT: Value Added Tax

VAT is a consumption tax, charged on most goods and services traded for use or consumption in the EU. It is levied on the "value added" to the product at each stage of production and distribution. The "value added" means the difference between the cost of inputs into the product / service and the price at which it is sold to the consumer. 

VAT is charged when VAT-registered (taxable) businesses sell to other businesses (B-2-B) or to the final consumer (B-2-C). VAT is intended to be "neutral" in that businesses are able to reclaim any VAT that they pay on goods or services. Ultimately, the final consumer should be the only one who is actually taxed. 

Businesses are given a VAT identification number and have to show the VAT charged to customers on the invoices. 

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
VAT rate in the Netherlands set to increase on 1 October 2012 - from 19% to 21%
Viewed 11434 times since Wed, Jun 13, 2012
Vat exemptions - funeral cases
Viewed 14369 times since Thu, Sep 6, 2012
Can we obtain a VAT number without incorporating a business in the Netherlands?
Viewed 17638 times since Fri, May 31, 2013
The tax authorities do not want to register my business for VAT.
Viewed 2422 times since Thu, Dec 1, 2011
How can I get a time extension for a VAT return?
Viewed 3442 times since Mon, Dec 12, 2011
Can I claim back all VAT on my expenses as a business owner?
Viewed 12721 times since Tue, Dec 13, 2011
What is the VAT rate on public transport?
Viewed 14545 times since Fri, Apr 5, 2013
My business is not VAT registered. Can I still reclaim VAT we have paid for goods/services?
Viewed 8086 times since Tue, Nov 29, 2011
How does the current EU VAT system work?
Viewed 18073 times since Sun, Feb 24, 2013
What is important for the VAT declaration? Date of service provided, date of invoice or date of payment?
Viewed 1048 times since Wed, Jan 21, 2015