VAT rates in the Netherlands: 21%, 9% and 0% explained

The Netherlands has three VAT rates. Which rate you must apply depends on what you sell and to whom. Below is an overview.

21% — the standard rate

This is the default rate and applies to most goods and services: consultancy, IT services, clothing, electronics, and much more. If you are not sure which rate applies, 21% is usually the right choice.

9% — the reduced rate

The reduced rate applies to, among other things:

• Food and beverages (non-alcoholic)
• Books, newspapers and magazines (including digital)
• Medicines
• Hairdressing services
• Certain labour-intensive services such as repairs to bicycles, shoes and clothing

0% — the zero rate

The zero rate mainly applies to:

• Export of goods to countries outside the EU
• Supplies to businesses within the EU (intra-Community supplies) — provided the conditions are met
• Certain international services

Note: 0% is not the same as "VAT exempt". With the zero rate you still need to keep VAT records and file VAT returns, but the amount payable is zero.

VAT exemption (no VAT rate)

Some professions and activities are fully exempt from VAT, such as education, healthcare provided by recognised professions, and financial services. In that case you do not charge any VAT at all, and you state this on your invoice (for example "exempt from VAT, Article 11 Dutch VAT Act").

How do you calculate VAT?

VAT is calculated on the amount excluding VAT. With 21% VAT on €100: €100 × 0.21 = €21 VAT, total €121. Use our free VAT calculator to work this out quickly, including or excluding VAT.

Not sure which rate applies to your situation? An accountant can confirm this definitively — find one via our accountant directory.