Dutch VAT Rates have been constantly revised over the last few decades, making it one of the most amended tax regulations in the Netherlands. This is one of the main factors why many of the small business owners in the Netherlands and international businesses with varied and complex business procedures have opted to seek the help of professional tax accounting consultants and advisors. Dutch VAT Rates fall into different categories, and are largely dependent upon the types of goods or services that are being sold by the entrepreneur or the business entity.  are largely classified into three kinds of different rate categories these are mentioned below for the ease and convenience of the reader:

General Dutch VAT Rate:

The general Dutch VAT rates for most goods and services supplied to intra community acquisitions and the imports of all goods, unless determined by the tax authorities to be otherwise is 19% of the total value of goods sold. Most commercial items, excluding items that fall under either the basic necessities categories or luxury goods, fall under this particular tax bracket.

Dutch VAT Rate on Essential Goods:

This particular rate is only applicable to the goods and services that are listed under essential categories in accordance with the laws pertaining to the VAT laws. These goods are usually mentioned in a listing called List 1 by the Dutch Value Added Tax authorities. The rate is low, 6% of the value of the goods sold to be specific. Some of the items that fall under this category are:

Foodstuffs, animal medicines, bandages, potable water, books, rented or leased books, the provision of sports or bathing facilities the provision of accommodation by a hotel, guest house or a business in a holiday location, magazines, pharmaceutical products, medical and pharmaceutical consumables, all forms of medical aids provided to humans or animals, general foods and beverages that are related to human consumption (except alcoholic beverages and related products), entrance for sports, events, theatres, cinemas, music performance, zoos, and several other such items that are listed under the particular categories in the Dutch VAT guidelines.

Dutch VAT Rate on Luxury Goods:

For goods and services that fall under the category of Luxury goods in the Dutch, the rate, as per the amendment to the Dutch VAT laws in 2012, is also at 19% of the total value of the goods sold. The amendment in the Dutch VAT laws in 2012, intended to make the Dutch one of the most tax friendly destinations for businesses in the European Union, equalized the Dutch VAT rates to the same as the general goods category.

Besides the three major Dutch VAT categories mentioned above, there is a special and specific exemption known popularly as the0% rate. This is a concession made by the Dutch tax authorities and is a part of particular list of items, commonly called Table 2 and belong to the Dutch VAT Act. The zero rate of VAT applies to such items as the export of goods, the supply of ocean-going vessels that carry essential goods and materials (in this particular type, luxury ocean craft or pleasure craft) and aircraft, the provisioning of ocean-going vessels, and other such goods and services.

Duijntax is a specialized Tax advisory firm in the Dutch that caters to businesses and entrepreneur in their Dutch VAT advisory and compliance needs. Duijntax is one of the oldest and the most reputed firms specializing in this domain, with a successful and distinguished track record spanning decades of serving major clients, ranging from small businesses to large renowned multinational corporations, across the Dutch and other countries in the European Union as well as other continents, including business entities based elsewhere in the world who sell goods or services in the Dutch. Duijntax comprises a specialized and experienced team along with the latest in technological infrastructure to serve your business needs seamlessly and successfully.