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.
Comments
There are no comments for this article. Be the first to post a comment.
Name
Email
Security Code Security Code
Related Articles RSS Feed
Can I claim back all VAT on my expenses as a business owner?
Viewed 13801 times since Tue, Dec 13, 2011
Can we obtain a VAT number without incorporating a business in the Netherlands?
Viewed 18633 times since Fri, May 31, 2013
Vat for musician - did the vat rate of 6% change too?
Viewed 15380 times since Thu, Oct 4, 2012
How can we verify and check a VAT number of a company we do business with?
Viewed 15998 times since Thu, Feb 7, 2013
Which information should be mentioned on an invoice to my client?
Viewed 17099 times since Fri, Nov 4, 2011
Does an orthodontist or a dentist have to charge VAT to clients?
Viewed 16978 times since Thu, Apr 18, 2013
VAT on online education
Viewed 13527 times since Thu, Dec 6, 2012
For which expenses can I claim back the VAT?
Viewed 18477 times since Sun, Feb 24, 2013
How are VAT returns filed?
Viewed 16938 times since Tue, Nov 29, 2011
VAT rate in the Netherlands set to increase on 1 October 2012 - from 19% to 21%
Viewed 12937 times since Wed, Jun 13, 2012