Working through the Dutch value-added tax (VAT) landscape is integral to how you price, invoice, and get paid. There are some legitimate reasons to invoice without VAT (factuur zonder btw in Dutch), but the rules that govern them are specific, and getting it wrong can lead to serious consequences.

Below, we’ll cover the situations in which VAT drops to zero and explain how to draft a compliant invoice while avoiding pitfalls.

What’s in this article?

• When can you send an invoice without VAT in the Netherlands?
  
• How do you create a compliant invoice without VAT?
  
• What are the risks of invoicing without VAT?
  
• How Stripe Tax can help
  

When can you send an invoice without VAT in the Netherlands?

Though VAT usually appears on Dutch invoices, certain transactions don’t require it. These fall into three categories: exempt activities, zero‑rated sales, and services in which the VAT liability shifts to your customer. There are also certain business schemes under which you don’t charge VAT.

Here’s more information on the type of transactions that don’t require charging VAT:

Exempt activities

Some sectors are outside VAT’s scope, including healthcare services, education, sports clubs, fundraising activities, financial or insurance services, renting or selling real estate more than 2 years old, and childcare. In each of these scenarios, you charge no VAT. You still send invoices and include all standard information, but you leave the VAT line at zero and cite the exemption so your customer understands why no tax applies.

Small businesses scheme (KOR)

Entrepreneurs with modest turnover can opt into the small businesses scheme (kleineondernemersregeling or KOR). The scheme is open to Dutch sole proprietors, partnerships, foundations, associations, and private limited businesses (BVs). Under KOR, you don’t charge VAT or reclaim it on your costs. If your revenue doesn’t exceed €20,000 per year, you can issue VAT‑free invoices and stop filing VAT returns as long as you note on each invoice that KOR applies. If your turnover rises above €20,000, you must notify the Tax and Customs Administration (Belastingdienst) immediately.

EU SME scheme (EU‑KOR)

A similar option arrived January 1, 2025, for EU‑based entrepreneurs with limited Dutch revenue. If you’re established in another EU country, make €20,000 or less in sales in the Netherlands, and keep your total EU turnover under €100,000, you can register with your home tax authority to omit Dutch VAT. You won’t charge or reclaim Dutch VAT and will file quarterly turnover reports. Certain transactions, such as imports from outside the EU, are excluded. Your invoice should state that the EU SME scheme applies so Dutch customers know to handle the tax.

Zero‑rated sales

Other sales remain within the VAT system but are taxed at 0%, so you continue to keep VAT records and can deduct input VAT. These include exports of goods outside the EU and international transport of goods. For exports, note the legal basis for the zero rate, and keep evidence that the goods left the Netherlands. If you cannot prove the destination, Dutch VAT might still be due.

Reverse‑charge services

The VAT obligation transfers to your customer for many cross‑border B2B services. You omit VAT only when the customer is a business with a valid VAT number. On the invoice, state “VAT reverse‑charged” and include the customer’s VAT number. You still report the sale in your VAT return and recapitulative statement, also known as the EC Sales List. Misapplying the rule—charging no VAT when local VAT is due—can make you liable for the Dutch tax plus penalties.

How do you create a compliant invoice without VAT?

Not charging VAT doesn’t mean you’re exempt from other invoicing rules. Dutch tax rules require the same level of detail whether the VAT rate is 21%, 9%, 0%, or absent.

Here’s what your invoices will always need to include:

• The invoice date

• A unique, sequential invoice number

• Your business name, address, and VAT identification number (if applicable)

• The customer’s name and address

• The customer’s VAT number (if applicable)

• The product or service you’re charging for and the quantity of units sold

• Delivery or performance date

• Net price, any discounts, and the total amount payable

• The VAT rate applied or, if no VAT is charged, the reason why (e.g., 0% VAT—export, KOR, VAT reverse‑charged)

Keep careful records. The Netherlands requires e‑invoicing for business‑to‑government transactions, and many businesses have adopted it for B2B sales. Whether you send paper or electronic invoices, you must store them for at least seven years (10 years for real estate transactions). These rules apply whether or not you’re charging VAT.

What are the risks of invoicing without VAT?

Skipping VAT on an invoice when the tax is supposed to be included can cause problems for businesses. The Dutch tax authority can impose fines for errors up to €5,278 and penalties up to 50% of the VAT due for gross negligence. If the authorities consider your mistake fraudulent, that penalty can climb to 100% of the tax owed. Late filings also attract fines.

You might risk nonfinancial penalties as well. Misclassifying a sale as exempt or zero‑rated can cost you your right to reclaim VAT on related costs. Inspectors might reclassify your activity and demand back tax. Customers rely on invoices to reclaim their input VAT, so if yours is missing necessary information or includes incorrect wording, they might refuse to pay until you fix it. Misapplying reverse‑charge or zero‑rate rules (for example, not obtaining your customer’s VAT number or not proving that goods left the country) can create liabilities in the Netherlands or abroad.

If you accidentally omit VAT on an invoice, issue a corrected invoice showing the proper tax, adjust your return, and pay any VAT due. Keep clear records so tax authorities can easily understand why you left out VAT on any invoice.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it determines whether VAT should be charged at all and automatically calculates the applicable VAT on both physical and digital goods and services.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.
  
• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.
  
• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.
  
• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.
  

Learn more about Stripe Tax, or get started today.