How VAT works in the Netherlands
In the Netherlands VAT is called btw (belasting over de toegevoegde waarde) and, in legal texts, omzetbelasting. Businesses add it to their prices, collect it from customers and pay it to the Dutch Tax Administration (Belastingdienst). They can usually deduct the BTW they paid on business purchases, so in the end the consumer carries the cost.
There are three rates:
- 21% (standard rate) – most goods and services, from electronics and clothing to consultancy, and, since 1 January 2026, hotel and holiday accommodation.
- 9% (reduced rate) – among other things food and non-alcoholic drinks, books, medicines, water, hairdressing and some repairs.
- 0% (zero rate) – mainly exports outside the EU and intra-EU supplies to VAT-registered businesses.
Some services are exempt instead, for example most healthcare and education. Exempt is not the same as 0%: with an exemption no BTW is charged, but the supplier also cannot reclaim BTW on its costs.
Formula: adding Dutch VAT
BTW = net amount × 0.21 (or 0.09)
gross amount = net amount × 1.21 (or 1.09)
Example: a Dutch web designer quotes €850 excluding BTW. The VAT is 850 × 0.21 = €178.50, so the client pays €1,028.50.
Formula: removing Dutch VAT from a shop price
Dutch consumer prices always include BTW. To find the net amount, divide by 1.21 or 1.09; never just take 21% off the total.
net amount = gross amount ÷ 1.21 (or ÷ 1.09)
BTW = gross amount − net amount
Example: an office chair costs €363 in a Dutch shop. 363 ÷ 1.21 = €300 net, so the BTW is €63. Deducting 21% of €363 would give €76.23, which is wrong by more than €13.
The BTW inside a gross price is 21/121 of the total (about 17.36%) at the standard rate and 9/109 (about 8.26%) at the reduced rate.
Examples
| Net amount | 9% BTW | Gross at 9% | 21% BTW | Gross at 21% |
|---|---|---|---|---|
| €10.00 | €0.90 | €10.90 | €2.10 | €12.10 |
| €100.00 | €9.00 | €109.00 | €21.00 | €121.00 |
| €250.00 | €22.50 | €272.50 | €52.50 | €302.50 |
| €1,000.00 | €90.00 | €1,090.00 | €210.00 | €1,210.00 |
Practical notes for expats, freelancers and visitors
- Freelancers (ZZP). If you are registered for VAT in the Netherlands you charge BTW on your invoices and file returns, usually quarterly. With a turnover below €20,000 a year you can opt for the small business scheme (KOR): you then charge no BTW but cannot reclaim any either.
- Invoices to EU businesses. For many business-to-business services to another EU country the reverse-charge mechanism applies: you invoice without Dutch BTW and the customer accounts for VAT in its own country.
- Tourists from outside the EU can sometimes reclaim Dutch VAT on goods taken home. Shops that offer tax-free shopping give you the paperwork; a service fee is usually deducted.
- Restaurant bills mix rates: food and soft drinks are 9%, alcoholic drinks 21%.
For VAT at any other rate, including UK VAT or US sales tax, use the general VAT and sales tax calculator. If you are also comparing Dutch job offers, our Dutch salary calculator estimates your net pay.
Frequently asked questions
What are the VAT rates in the Netherlands in 2026?
The standard rate is 21%, the reduced rate is 9% and the zero rate is 0%. Since 1 January 2026 accommodation such as hotel stays has moved from 9% to 21%.
How do I calculate 21% BTW?
Multiply the net amount by 0.21 for the VAT, or by 1.21 for the total. €200 excluding BTW becomes €242 including BTW, of which €42 is VAT.
How do I remove BTW from a Dutch price?
Divide by 1.21 (standard rate) or 1.09 (reduced rate). The difference between the two amounts is the BTW.
Are Dutch prices shown with or without VAT?
Prices for consumers must include BTW. Business-to-business quotes are usually given excluding BTW, often marked “excl. btw”.
Can I use this for my Dutch VAT return?
It is useful for checking amounts, but your return adds up all VAT on sales and purchases per period. For questions about rates or deductions, check the Belastingdienst website or ask an accountant.
Last reviewed: 2026-10-06. Results are estimates for information only.