Getting value-added tax (VAT) right is part accounting, part logistics, and all precision. The Dutch VAT system has 3 rates: 0%, 9%, and 21%. The 0% VAT rate in the Netherlands helps track international trade flows within the VAT system, and knowing when to use it is important. To use the 0% rate, you’ll need to prove that you’ve met the requirements: the buyer’s VAT number checks out, the goods left the country, and your invoices and export records tell the same story.

Below, we’ll discuss what you need to know about 0% VAT in the Netherlands.

What’s in this article?

• What does the 0% VAT rate mean in the Netherlands?
  
• When can Dutch businesses apply the 0% VAT rate?
  
• What conditions must be met to use 0% VAT?
  
• What’s the difference between 0% VAT and a VAT exemption?
  
• How do you show 0% VAT correctly on an invoice?
  
• What are common mistakes when applying 0% VAT?
  
• How Stripe Invoicing can help
  

What does the 0% VAT rate mean in the Netherlands?

The 0% VAT rate in the Netherlands refers to sales that have 0% VAT (“0 btw” in Dutch) applied. The sales are still recorded and filed, and you can still reclaim VAT on the costs tied to them. But you don’t charge the typical VAT rate on top of the purchase cost.

The 0% VAT rate applies to certain qualifying types of sales, such as when a Dutch business ships goods outside the EU or to another VAT-registered business within the EU. These sales are different from VAT-exempt sales because the business can still reclaim input VAT on production costs. With VAT-exempt sales, the business can’t reclaim any costs.

Some payments platforms can help simplify this experience for businesses. For instance, Stripe Tax can automatically apply the zero rate to transactions where applicable.

When can Dutch businesses apply the 0% VAT rate?

The 0% VAT rate in the Netherlands applies in specific situations where goods or services cross borders or contribute directly to exports. Each scenario is narrowly defined, and eligibility depends on documentation, transport proof, and the buyer’s identity.

Here’s a closer look at each one.

Exports outside the EU

When their goods leave the EU, Dutch businesses can charge 0% VAT. Evidence must show that the goods physically left the EU. The rate applies to direct exports, which are sold and shipped by the Dutch seller, and indirect ones, where the foreign buyer arranges transport.

You must be able to demonstrate that your shipment has really left the EU. If that proof is missing or late, VAT becomes due retroactively, which can also trigger penalties.

Intra-EU supplies

The 0% rate can also apply under the intracommunity supply rules for sales between VAT-registered businesses within the EU. The seller applies the zero rate and the buyer must report an intracommunity acquisition. To qualify, the buyer must have a valid VAT number in another EU country, verified through the VAT Information Exchange System (VIES) portal, and the goods must physically move from the Netherlands to that EU destination.

These transactions must also be reported in the EC Sales List and in the seller’s VAT return. Missing or inaccurate data (e.g., an invalid VAT number, a lack of shipping records) can cause the 0% rate to be denied later.

International transport and related services

The Netherlands applies the 0% VAT rate to certain forms of international passenger and goods transport, including:

• Shipping, aviation, and freight services that move goods across EU or external borders

• Work directly connected to those movements, such as cargo handling, loading, and customs brokerage

Supplies tied to export or customs situations

Transactions connected to export goods or special customs situations (e.g., temporary storage, bonded warehouses, inward processing) can qualify for the 0% rate. The rule is designed to prevent double taxation before goods leave EU customs territory.

Specific services related to foreign trade

Some service categories qualify for 0% VAT when they directly support exports. Examples include services physically performed on exported goods and repairs or maintenance work on aircraft or ships engaged in international transport.

In all cases, applying the 0% VAT rate requires evidence. Every qualifying transaction must have a paper trail (e.g., shipment records, VAT numbers, customs forms), and tax authorities can inspect documents to confirm compliance.

What conditions must be met to use 0% VAT?

To apply the 0% VAT rate in the Netherlands, you’ll need to prove your transaction qualifies. Tax authorities expect specific documentation, and the rate holds only if that evidence is complete and consistent.

Proof of transport

Businesses must demonstrate that the goods physically left the Netherlands for both exports and intra-EU sales.

Acceptable proof includes:

• Transport documentation such as bills of lading, air waybills, and courier confirmations

• Export declarations filed through Dutch Customs

• Delivery notes or signed confirmations from carriers or recipients

If a third party handles transport, its records should match the details on the invoice, including dates, quantities, and destination.

Buyer verification

The buyer’s VAT number must be valid in another EU member state for intra-EU supplies. Sellers are expected to verify it in the VIES database and keep evidence of that check. An invalid or missing VAT number can disqualify the transaction.

Proper invoicing and reporting

Invoices must explicitly state that the 0% VAT rate applies, include both parties’ VAT numbers, and describe the goods or services supplied.

The sale also needs to appear in:

• The VAT return (under 0% supplies)

• The EC Sales List, with the buyer’s VAT ID and total value of goods

Discrepancies between those filings and invoices often lead to reviews or denial of the 0% rate.

Record retention

Dutch businesses must keep export and VAT documentation for at least seven years. That period can increase to 10 years for immovable goods or assets. Digital records are acceptable as long as they’re accessible for inspection.

What’s the difference between 0% VAT and a VAT exemption?

Both 0% VAT and a VAT exemption mean you charge no VAT on the sale. But these two function differently in the Dutch system.

When a transaction qualifies for the 0% rate, it still falls under the VAT framework. That means you don’t charge VAT to the customer, but you still file it as a taxable sale and you can reclaim input VAT on expenses linked to that transaction, such as raw materials, logistics, production, and professional services.

An exempt transaction is treated as nontaxable for VAT purposes. The business can’t charge VAT and can’t reclaim VAT on related expenses.

Common examples of VAT-exempt sales include:

• Financial services such as loans and insurance

• Healthcare and education sales

• Residential property rentals

How do you show 0% VAT correctly on an invoice?

Even with a 0% rate, an invoice must meet the same Dutch legal standards as one that carries 9% or 21% VAT. The document connects your sale to your right to deduct input tax so precision matters.

Here’s what every zero-rated invoice should contain:

• The seller’s and buyer’s VAT ID numbers

• A clear reference to the 0% VAT rate, usually written as “0% VAT rate applied” or “VAT rate: 0% (intracommunity supply/export)”

• The reason for the zero rating, such as “export outside the EU” or “intracommunity supply”

• The usual, required invoice details, including date, sequential invoice number, description of goods or services, quantity, and total value

• The euro equivalent of the sale amount, if you’re issuing in a foreign currency

The information on the invoice should match that of your own VAT return, the EC Sales List, and any shipping or customs records. Small mismatches, such as an incorrect VAT ID or missing export notation, could cause the Dutch tax authority to reject the 0% rate.

What are common mistakes when applying 0% VAT?

Many of the common errors made when applying 0% VAT stem from incorrect documentation and timing. The Dutch tax authority can take a strict view: if the paper trail is incomplete or inconsistent, the 0% rate can be denied and regular VAT becomes due retroactively.

Here are common issues businesses encounter when they apply 0% VAT.

Missing or weak proof of export

You need complete evidence that the goods in question left the Netherlands. Bills of lading without signatures, missing customs declarations, and delayed shipping confirmations are all warning signs.

Invalid or unchecked VAT numbers

Failing to verify a customer’s VAT number in the VIES database for intra-EU supplies can be a costly mistake. If the buyer’s number turns out to be invalid, Dutch authorities can deny the 0% rate even if the goods were delivered. Always document the verification step, and keep a time-stamped record.

Incorrect or inconsistent invoices

An invoice that omits a VAT number, mislabels the VAT rate, or lacks a reference to the zero rate rule can be a warning sign. The details on the invoice must match those of the VAT return, EC Sales List, and supporting transport records.

Overlooking EC Sales List reporting

It can be easy to forget that intra-EU supplies require reporting in the EC Sales List. Omitting a transaction or reporting it under the wrong VAT ID can cause problems, even if the rest of the documentation is correct.

The 0% VAT rate relies on—and is protected by—precision. The businesses that get it right treat VAT documentation as an important part of the sale.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate AR: Easily create, customize, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.

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• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies, and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning software, helping you keep systems in sync and reduce manual data entry.

Learn more about how Stripe can simplify your AR process, or get started today.