How Does BTW (VAT) Work?
Dutch VAT rates: 21% standard, 9% for food/medicines/books, 0% for exports. You collect VAT from clients on behalf of the government and remit it quarterly to the tax authority, minus VAT you paid on business expenses.
Are You VAT-Liable?
If annual revenue exceeds €20,000, you must register for VAT. Below that, apply for KOR exemption. Note: with KOR, you cannot reclaim VAT on expenses.
Calculating VAT
Your service: €1,000 × 1.21 = €1,210 invoice. The €210 VAT goes to the tax authority.