Netherlands

Value-added tax (VAT)

VAT, known in Dutch as the Belasting over de Toegevoegde Waarde or btw, is payable on the supply of goods and services rendered in the Netherlands as well as on the importation of goods and on the ‘intra-European’ acquisition of goods. There are three VAT rates, which are 21, 9, and 0 per cent. 

The standard VAT rate is 21 per cent. 

The reduced 9 per cent VAT rate is applicable on certain prime necessities, on certain energy-saving insulation activities on houses and also on certain e-publications. 

The special 0 per cent VAT rate is applicable mainly to intra-EU supplies, supplies of goods exported to outside the EU, supplies of goods placed in bonded warehouses, services rendered in connection with the above, and certain international services.  

The following domestic transactions are exempt from VAT: 

• The supply of immovable property two years after putting it into use and lease. However, if the lessee’s use of the immovable property is 90 per cent or more for input VAT-deductible purposes, the lessor and lessee may opt to be subject to VAT on rent, in which case the lessee may deduct the VAT charged in respect of the property. 

• Medical, cultural, social, and educational services. 

• Services provided by banks and other financial institutions in connection with payment transactions and the granting of credit facilities. 

• Insurance transactions. 

• Certain transactions in shares by controlling active parent companies and transactions by commercial share dealers. 

The zero VAT rate applies to the supply and installation of solar panels and solar panels used as roofing materials. The zero VAT rate only applies if the solar panels are intended to be installed on or in the immediate vicinity of private dwellings or housing. 

As of 2026 the VAT rate for accommodation is increased from 9 to 21 percent. 

The Netherlands implemented the ‘EU four Quick Fixes’ aiming to improve the day-to-day functioning of the VAT system for EU cross-border B2B trade. These Quick Fixes concern: the use of the VAT identification number, call-off stock, proof of transport and chain transactions. The changes have consequences for the administrative systems, VAT registrations, contracts, (electronic) documents and invoices of entrepreneurs. 

The Netherlands implemented the EU VAT rules applicable to cross-border business-to-consumer (B2C) e-commerce activities. 

Holding / financing companies 

Special attention needs to be given to the VAT position of holding and/or financing companies. The exact VAT status (VAT entrepreneur or not) and VAT deduction position depends on several aspects and might be complicated.  

As of 1 July 2025, two new decrees have entered into force that have a broad impact on the VAT deduction rights of holding companies. At the same time, two decrees that were frequently invoked in practise during discussions and arrangements between entrepreneurs and the Dutch Tax Authorities regarding (the scope of) the deduction right of holding companies have been withdrawn. 

Now that these decrees have been withdrawn, it is important to map out the consequences and assess how the amended policy affects the VAT deduction rights. 

Fiscal unity / VAT group 

The Netherlands allows legally independent businesses that are closely bound to one another by financial, economic, and organisational links to be treated as a single taxable person. 

Transactions between head office and branch in scope of VAT in case of VAT group 

As of 1 January 2024, cross-border services between a head office or VAT fixed establishment that is part of a VAT group, and a VAT fixed establishment or head office established outside that EU Member State generally are subject to VAT.   

This applies both to the impact for establishments in the Netherlands as to establishments in other Member States. Since the services will become VAT taxable, reverse charge VAT may be due in the Netherlands for charges of (a) foreign establishment(s) to Dutch establishment(s). Furthermore, the change may affect the right to deduct input VAT in case Dutch establishment(s) charge amounts to other fixed establishment(s) outside of the Netherlands. The fact that services between establishments will be in scope of VAT does not mean that all charges will result in VAT consequences. It for instance needs to be determined if for all transactions there is a remuneration for a service for VAT purposes and/or if it may be possible to apply a VAT exemption on (part of) the transactions.

Transfer pricing and VAT 

The Court of Justice of the EU recently ruled in the Arcomet Towercranes case that contractually agreed intragroup services, remunerated through a transfer pricing adjustment, constitute a VAT‑taxable supply. However, this does not mean that every transfer pricing adjustment is subject to VAT. The Court of Justice emphasized that the VAT implications of transfer pricing adjustments must be assessed on a case-by-case basis. It is therefore important to assess and document intragroup services in a timely manner, taking into account their potential VAT consequences. 

VAT adjustment for real‑estate related services 

As of 1 January 2026, a revision scheme will apply to VAT on certain services relating to immovable property (“real‑estate services”), such as renovation, expansion, maintenance or repair. If you are a VAT‑taxable entrepreneur who owns or rents real estate, you will need to track per building whether qualifying real‑estate services have been acquired and, if so, whether a change in use occurs during the 5‑ or 10‑year revision period that triggers a VAT adjustment. In such cases, you must determine per building and per qualifying real‑estate service whether a revision applies during the revision period. 

Central Electronic System of Payment Information (CESOP) for payment service providers

As of 1 January 2024, based on EU law, additional administrative obligations will apply to a broad group of European payment service providers. With 25 or more cross-border payments per beneficiary per quarter, the payment service provider is obliged to keep payment data in registers with sufficient accuracy and to share these registers with tax authorities of the relevant Member State. The tax authorities of the Member States exchange this data in the context of the fight against fraud via the newly established CESOP.   

There are rules that determine per transaction to which country the CESOP obligations apply. For example, if the beneficiary of a payment engages a Dutch payment service provider and the payer/consumer engages a payment service provider in another EU country, the Netherlands is the country where the CESOP registration must take place. The Dutch VAT Act regulates which data must be included in the registers of the payment service providers.

Customs, excise tax and climate

Many goods imported to the Netherlands from outside the European Union are subject to customs and excise duties. The tariffs and rates that apply to the different goods vary widely and change regularly.

An excise tax is levied on certain consumer goods (e.g. cigarettes, cigars, mineral oils, alcoholic products). If the goods are used solely as raw materials, no excise tax is levied. The excise tax is refundable if the article is exported.

Phasing Out of Excise Duty Reduction

In 2022, the government reduced excise rates for petrol, diesel, and LPG due to rising energy prices. Without intervention, this discount would have ended at the end of this year. The fuel excise discount will be partially continued, but will decrease by 448 million euros. The reduction of the discount is evenly distributed across petrol, diesel, and LPG. This results in a higher price per litre at the pump of 5.6 cents for petrol, 3.6 cents for diesel, and 1.3 cents for LPG. 

Carbon Border Adjustment Mechanism (CBAM)

CBAM applies to imports of more than 50 tonnes of CBAM goods into the EU per year. CBAM goods are certain goods and selected precursors whose production is carbon intensive and at the most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. From 2026, the transition phase of CBAM will be completed and the mechanism will be fully operational. To facilitate this, the Dutch Environmental Management Act will include various implementation-focused measures. 

CO₂ levy for industry

A Dutch national CO₂ levy is in place per 1 January 2021 for certain industrial production and waste incineration. This levy is introduced alongside the existing system for the pricing of CO₂ at EU level (EU-ETS). 

Rate for CO2 levy on industry 

For the period 2026–2030, the rate for ETS1 and nitrous oxide installations will be reduced to 78.67 euro per tonne of CO2, and the dispensation factor will be adjusted to 1.023. 

Since this national CO2 levy for ETS1 and nitrous oxide installations is only payable when the rate exceeds the EU ETS price, and the expectation is that the EU ETS price will be higher than 78.67 euro per tonne of CO2 from 2027 onwards, no CO2 levy would be due from that point.The EU ETS price depends on many factors. Additionally, it is intended that parties aligned with the European ETS sustainability goals will already be effectively exempt from the national CO2 levy starting in 2026. 

Rate for CO2 levy on waste processing installations 

For the period 2026–2030, the rate for waste processing installations will be increased to 295 euro per tonne of CO2. The dispensation factor will be rapidly reduced to zero by 2033. With this price and dispensation factor, the Dutch government aims to strengthen the business case for CO2 capture and storage by waste processing installations. 

Carry-back of CO2 tax dispensation rights 

The facility for offsetting dispensation rights will be adjusted and will no longer be subject to a time limit. Additionally, the requirement to offset them against the oldest outstanding year has been abolished, allowing parties to choose the most financially favourable settlement. 

Mining Act 

Mining levies are charges on the exploration and extraction of oil or gas in the Netherlands. There are three types of mining levies: 

• surface fee 

• royalty 

• profit share 

Which levy applies is determined in the Mining Act and depends on the type of permit obtained from the Ministry of Climate and Green Growth. 

Lorry charge

From mid-2026, owners of lorries in the Netherlands will pay an average of 0.186 euro per kilometre driven. This charge applies to domestic and foreign lorries weighing 3,500 kilograms or more. It will be levied on motorways and selected national and municipal roads. The Eurovignette will be abolished, and motor vehicle tax will be reduced. 

Reduced energy tax rate for hydrogen  

If you have a company in the Netherlands, you have to pay energy tax if your business uses energy. The amount of energy tax you owe depends on how much energy you use. For certain situations refund schemes apply. 

As of 1 January 2026, an energy tax rate for the energetic use of pure hydrogen will be introduced. The rate will be equal to the electricity rate in the fifth bracket (and lower than the rate for natural gas). Grey, blue, and green hydrogen will be taxed equally.  

Immovable property tax

Municipalities impose an annual immovable property tax on the owners of immovable property. The rates depend on the municipality. The taxable basis is the market value of the immovable property. Please note that the (assessment of the) value is also of importance for CIT, as depreciation might be limited based on this value (see Limited depreciation of immovable property in the Deductions section).

Transfer tax on immovable property

Acquisition of economic or legal ownership of immovable property in the Netherlands is subject to a transfer tax over its market value. The general tax rate of the transfer tax is 10.4 per cent. It is relevant whether the buyer will actually live in the property on a long-term basis (so no holiday homes or buy-to-let properties) to be eligible for the lower tax rate of 2% or the tax exemption for starters under 35. Otherwise, the general transfer tax rate of 10.4% will be applicable. Per 2026, residential properties that are not their owners' main place of residence (e.g. a second home or holiday home) will be subject to a transfer tax rate of 8%.

Young first-time buyers on the housing market are eligible for a transfer tax exemption once. Someone will qualify as a first-time buyer if they are at least 18 years old but under the age of 35 when they purchase their first house. Buyers aged 35 and over, and buyers younger than 35 who already used the exemption once, will pay the transfer tax at the reduced rate of 2% when buying a home. There is a maximum housing value limit of EUR 555,000 (2026) for the one-off exemption. This limit applies to the entire dwelling and not to the value of the part of the dwelling acquired. Starters who buy a more expensive house pay 2% transfer tax on the entire amount of the property just like other home buyers.

Transfer tax on acquisition of shares in a real estate entity

The acquisition of shares in an entity that owns real estate may also be subject to transfer tax if that entity is characterised as a so-called real estate entity. The threshold for qualifying as a real estate entity is met if more than 50% of the assets of the entity consist of real estate and at least 30% consist of Dutch immovable property.

VAT/transfer tax concurrence scheme share transactions involving real estate entities

The transfer tax concurrence exemption changes in 2024 in order to create a level playing field between share transactions and 'bricks and mortar' transactions. This relates to situations in which a company owns newly developed real estate and whereby the shares are transferred rather than the real estate itself (the ‘bricks and mortar'). In such instances, currently neither VAT nor transfer tax is payable. If the real estate in the corporation is used less than 90% for VATable services (such as the rental of residential properties or real estate in the education or healthcare sector), the acquisition of the shares is subject to a 4% real estate transfer tax.

Stamp duty

There are no stamp duties in the Netherlands.

Capital tax

The Netherlands do not levy capital tax on capital transactions (e.g. issue or increase of capital).

Payroll taxes

Employers must withhold wage tax from the employee’s gross salary and transfer the amount to the tax authorities. Employees treat the withheld wage tax as an advance levy of income tax. The income tax due is settled with the withheld wage tax. The tax tables applicable to individuals are provided in the Taxes on personal income section of the Netherlands Individual tax summary.

Social security contributions

Employers must withhold national insurance contributions from the employee’s salary at an aggregate rate of 27.65% calculated on the first EUR 38,098 (2024) of each employee’s gross salary and transfer the amount to the tax authorities. The employer bears the burden of the employee’s insurance contributions, which are also calculated by reference to the employee’s salary. Under circumstances, it may be required to pay or withhold a contribution based on the Health Care Insurance Act.

Insurance tax

An insurance tax is payable on insurance premiums if the insured is a resident of the Netherlands or if the insured object is in the Netherlands. The insurance tax rate is 21% (2025). Several exemptions are available (e.g. insurances of ships and aircraft operated in international traffic are exempt from insurance tax). In certain situations, an insurer outside the European Union may be required to take on a tax representative in the Netherlands.

Waste management contribution

Companies annually bringing 50,000 or more kilograms of packing material on the market must pay a ‘waste management contribution’ (Afvalbeheersbijdrage). The contribution also applies for companies removing more than 50,000 kilograms of packaging material after importing goods.  

The contribution also applies to SUP packaging (plastic disposable products or single‑use plastics) even if it is less than 50,000 kilograms. 

The amount payable varies according to the total weight and type of packaging. The contribution aims to cover the costs of recycling package materials. Companies that are not resident in the Netherlands but sell (online) to Dutch consumers, are also liable to the waste management contribution, subject to the threshold of 50,000 or more kilograms. 

Producers and importers of packaging expecting to exceed the threshold must register with the Packaging Waste Fund (Afvalfonds Verpakkingen) upfront. In the current year, they must file an estimation of the expected total volume of packing material. The contribution is then provisionally calculated. Before 1 April of the next calendar year, the actual amount and type of packaging must be reported. The actual contribution payable is recalculated accordingly. 

Since 2023 there is a wider definition of producers or importers. 

Aviation Tax Act 

As of 1 January 2021, a national aviation tax has been introduced. In the case of passenger flights departing from the Netherlands, a levy of 29.40 euro (2025) per departing passenger is due. The levy will not be imposed on transit passengers and children under the age of 2 years old. 

For the (private) aircraft, it applies that it has a take-off weight of more than 4,000 kilograms and departs from a number of designated airports.