VAT on your invoice: which rate, and when reverse charge?
Usually 21%, sometimes 9% or 0%, and sometimes no VAT at all but "VAT reverse-charged". Here is what to use when, under Dutch rules.
An overview, not tax advice. In doubt, check belastingdienst.nl or ask your accountant.
Invoice 2026-031
Bakkerij de Zon
Fatima el Amrani
| Design of order page | 24 × € 85,00 | € 2.040,00 |
| Hosting October | 1 × € 25,00 | € 25,00 |
- Subtotal
- € 2.065,00
- VAT 21%
- € 433,65
- Total
- € 2.498,65
Complete for an e-invoice
The three rates
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21%, the standard rate. For most services and products: design, advice, software, repairs.
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9%, the reduced rate. Among others for food and drink, books and a few labour-intensive services, like the hairdresser and the bicycle repairer.
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0%, for goods across the border. For goods you export, or supply to a business in another EU country. You charge no VAT, but the supply still goes on your VAT return.
Reverse charge: your client declares the VAT
With reverse charge you put no VAT amount on your invoice: your client declares the VAT. That happens mainly in two cases.
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A service to a business in the EU. For example a design for a client in Belgium. Put your client's VAT number on the invoice and list the invoice in your EC sales list (opgaaf ICP).
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Subcontracting in construction. Also within the Netherlands, and in a few other sectors with their own reverse-charge rule.
Write "btw verlegd" (VAT reverse-charged) on the invoice. Reverse charge only works to a business with a valid VAT number; check that number in VIES, the EU database.
A client outside the Netherlands
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A business in the EU: usually reverse charge for services and 0% for goods, with your client's VAT number on the invoice.
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A business outside the EU: for most services you charge no Dutch VAT. The service is then taxed in your client's country, like the US or the UK. Say on the invoice why there is no VAT.
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A consumer in the EU: usually Dutch VAT. If you sell more than € 10,000 a year at a distance to consumers in other EU countries, their country's rates apply.
No VAT: the KOR
If you use the small business scheme (KOR, up to € 20,000 turnover a year), you charge no VAT and put no VAT on your invoice. Do say that you are under the KOR, so your client knows why.
The app works out the VAT per line
Choose 21, 9 or 0% per line, and the app makes the amount per rate, the VAT and the total. If you are exempt, enter the reason once, and it goes into every UBL file.
Questions
Is VAT shown per line or per invoice?
The invoice shows, per rate, the amount without VAT, the rate and the VAT amount. Use two rates and there are two of those rows.
My client has no VAT number. Now what?
Then it is usually a consumer, and you charge Dutch VAT as normal. Reverse charge only works to a business with a valid VAT number.
Does the e-invoice change anything?
Not the VAT rules themselves. But it is planned that businesses report their VAT digitally from 2031, based on their e-invoices.
Would you send your invoices with this?
Bills & Friends is new. Whether I turn it into a complete product depends on your answer. It's three questions.