Does your organisation qualify for a VAT exemption?

Not tax advice — Dutch law only

This tool is purely informative and provides a general indication based on Dutch VAT legislation (the Dutch Turnover Tax Act 1968). The result is not tax advice and cannot be used as such. The rules in other countries (such as Belgium, Germany or the United Kingdom) differ considerably. Always consult a tax adviser for guidance on your specific situation.

For many Dutch sports clubs, foundations and non-profit organisations, VAT treatment is a complex subject. The Dutch Turnover Tax Act 1968 contains various exemptions and schemes that are specific to the Dutch tax system. Depending on your legal form, activities and turnover, you may qualify for the fundraising exemption (Article 11 of the VAT Act) or the Small Businesses Scheme (KOR).

With the interactive tool below, you work through the key questions in just a few steps to get an initial indication of which Dutch scheme may apply to your organisation.

A guide to the Dutch schemes

The schemes below are specific to the Dutch tax system. Other EU member states have their own exemptions and thresholds based on the European VAT Directive (2006/112/EC), but the specific implementation varies from country to country.

Fundraising exemption (Article 11(1)(v) of the VAT Act 1968)

The fundraising exemption is a specifically Dutch exemption for organisations that carry out fundraising to finance their charitable or social mission. Think of sports clubs organising a sponsored run, or a foundation selling merchandise. This exemption is based on Article 132 of the European VAT Directive, but the Dutch implementation with threshold amounts is unique.

The exemption only applies if the turnover from these activities stays below certain Dutch thresholds:

• Sports services: up to €50,000 per year (sports clubs only)

• Other services: up to €22,689 per year

• Supplies of goods: up to €68,067 per year

If a threshold is exceeded, the exemption lapses for that category. It is therefore important to track your turnover per category. These threshold amounts are periodically revised by the Dutch government.

Small Businesses Scheme (KOR)

The KOR is a Dutch exemption scheme based on Article 25 of the VAT Act 1968, intended for businesses with a low turnover. If your total VAT-liable turnover does not exceed €20,000 per year, you can register for the KOR with the Dutch Tax Administration. You then do not have to charge VAT or file VAT returns.

Please note: under the KOR you also cannot reclaim VAT on your purchases (no input tax deduction). The KOR applies for a minimum period of three years. Other EU countries have comparable small-scale exemptions, but with different thresholds and conditions.

Standard Dutch VAT scheme (21%)

If no exemption applies, you fall under the standard Dutch VAT scheme. This means you charge 21% VAT on your services and supplies, and you can reclaim the VAT on your purchases via your VAT return with the Dutch Tax Administration. The standard rate of 21% has applied since 2012; in addition, the Netherlands has a reduced rate of 9% for specific goods and services.

Important

The information on this page is based on the Dutch Turnover Tax Act 1968 and has been compiled with care, but offers no guarantee of completeness or accuracy. Dutch tax legislation is complex and may change. This information does not apply to organisations governed by the tax law of other countries. Always consult a qualified tax adviser before making decisions about the VAT treatment of your organisation. Newatogi accepts no liability for any consequences arising from the use of this tool.