Reduced VAT-tariff

The standard VAT-tariff in The Netherlands is 21%. As an entrepreneur you would assume that you have to charge 21% VAT on outgoing invoices and pay the same percentage VAT as preliminal taxes for your incoming invoices. However, to make certain goods and services more appealing, a reduced VAT-tariff of 9% has been created. This way the government stimulates the accessibility of these products and services. However, it is not always clear what goods and services are charged with this reduced VAT-tariff. In this article we will list all of them.

Goods taxed with 9% VAT

  1. Foodstuff: all foodstuff for human consumption fall under the lower tariff. Alcoholic beverages, tobacco, and foodstuff for animals are the exception. 
  2. Water: Some types of water fall under the 9% reduced VAT-tariff. Others (like seawater or steam) fall under the 21% tariff. To see what tariff applies to the water you supply, check here* 
  3. Agricultural goods like cattle feed, straw and seeds fall under the reduced tariff.
  4. To increase the accessibility of medicine and aids, these products are also taxed with the 9% tariff. These include birth control, infusion fluids and inhalations gasses.
  5. In a number of cases art, collectors items and antiques are also taxes at 9% VAT. Check here* what the conditions are. 
  6. Books, magazines, periodicals also fall under the 9% tariff. Magazines must be published at least three times a year to be eligible for the reduced tariff. 

If you want more detailed information on goods taxed with 9% VAT, you can read about it   here.

Services taxed with 9% reduced VAT-tariff

  1. Repairs for bicycles, shoes, leather, clothing and household linen are taxed at the reduced tariff of 9%. 
  2. Hairdressing services. Pay attention, the sale of haircare products, tending the hair of animals and other beauty treatments are taxed at 21% VAT. 
  3. Renovations to homes that are older than two years fall under the reduced tariff. 
  4. Granting access to camping facilities and lodging for short stays (maximum 6 months per year). 
  5. Artist performances with public being part of the performance directly (for example a dance performance) or indirectly (for example a recording). The VAT-tariff for artist differs per service. Check here* to know for sure if you are using the correct tariff. 
  6. Sport events: offering the opportunity for sporting events, swimming pools and sauna’s fall under the 9% tariff. 
  7. Passenger transport such as taxis and public transport are taxes at 9% VAT. 
  8. Supplying goods that are taxed at 9% VAT also fall under the same low VAT-tariff. 

Do you still have questions? Read in more detail about the 9% reduced VAT-tariff   here*.

Combinations

It can happen that as an entrepreneur you offer a combination of goods and/or services with different VAT tariffs. In some cases you will need to calculate and bill these tariffs separately. However, in other situations the combination will fall under one tariff. The principle here is that the consumer will see the goods and services as a whole. For example, the repairs of a bicycle mechanic and the used materials all fall under the same low tariff. Because it is not always that the combinations fall under the same tariff, it is advisable to present your own situation to the Tax Authorities or your own financial advisor.

0% tariff

In conclusion, there are also a number of situations for which you do not have to charge any VAT. Under this so-called 0% tariff fall, for example, various international transactions and international passenger transport. The VAT can, under certain conditions, be   shifted**. You can also, as a small entrepreneur be   exempt   from having to do VAT-administration.

Would you like to know more?

Read more about   the Dutch tax system   in English at Lexlupa. Or visit the   Tax Authorities* website to learn more about the different VAT-tariffs.

Lexlupa is a multidisciplinary effort of fiscal, legal and economic experts. We give advice and guidance to companies, institutions and private individuals at   life events.   Lexlupa   helps you to make well-informed choices in business and personal affairs, and we support you in managing your business in the best possible way.

*Need help navigating the Dutch websites? Reach out to us.

**Article (currently) only in Dutch