Doing business in the Netherlands means getting VAT right from Day 1, and that begins with understanding the VAT identification number. This number is how the Dutch tax authority knows you’re in the system, how your customers know your tax status is legitimate, and how you prove compliance across borders. It touches everything from invoicing and cross-border sales to reporting and returns.

Below, we’ll explain how a VAT identification number works, who needs one, how to register, and what it means for your business.

What’s in this article?

• What is a VAT identification number in the Netherlands?
  
• How is the Dutch VAT ID number structured?
  
• When is a Dutch VAT ID number required?
  
• How do businesses apply for a VAT ID in the Netherlands?
  
• How is the Dutch VAT ID used in practice?
  
• What happens if your Dutch VAT ID number is incorrect or missing on invoices?
  
• How can Stripe help Dutch businesses manage VAT compliance?
  

What is a VAT identification number in the Netherlands?

A VAT identification number in the Netherlands—known locally as a btw-identificatienummer or btw-id—is a tax identity that publicly anchors your business to the Dutch VAT system and the broader EU VAT infrastructure.

Your VAT ID is not the same as your VAT tax number (used for filing with the Dutch tax office), nor is it a generic business ID like your Chamber of Commerce (KVK) number. It’s your external-facing identity for VAT purposes, designed for use in communications with customers, suppliers, and tax authorities across Europe.

Your VAT ID does two important things at once:

• It signals to customers and suppliers that your business is officially registered to charge and reclaim VAT. Your customers, especially B2B clients, expect to see a valid VAT number before doing business since their ability to reclaim input VAT or account correctly for reverse charge VAT depends on it.

• It proves to EU tax authorities that your business is registered for VAT and allows you to file VAT One Stop Shop (VAT OSS) returns for cross-border sales rather than register for VAT in each EU country.

When you’re registered for VAT in the Netherlands, this number becomes your business’s “public tax passport.” You’ll use it in multiple places, including on all VAT invoices and in your VAT OSS returns.

How is the Dutch VAT ID number structured?

The Dutch VAT identification number follows a fixed format that aligns with EU standards.

Sample VAT ID number: NL123456789B01

Here’s what each part of this number means:

• “NL” is the country code for the Netherlands.

• “123456789” is a unique 9-digit identifier.

• “B01” is a static letter (always “B”) plus a 2-digit suffix.

In the Netherlands, you’ll have two different VAT-related numbers. They serve different purposes:

• Your VAT ID (btw-id) is the number you use publicly. It goes on invoices and contracts.

• Your VAT tax number (omzetbelastingnummer) is for direct communication with the Dutch tax office and is not meant for public use.

When people talk about “the Dutch VAT number,” they typically mean the btw-id. That’s the number your customers care about and the one tax authorities across Europe recognize.

When is a Dutch VAT ID number required?

When you register your business with the Dutch Business Register of the KVK, the Dutch tax office automatically determines whether you’re an entrepreneur for VAT purposes and need a VAT ID number.

If your business doesn’t have a permanent establishment in the Netherlands, you don’t need to register with the KVK. Instead, you register for VAT directly with the tax office. As of 2025, there’s no turnover threshold for foreign businesses that make sales in the Netherlands, which means that any business that sells taxable goods or services needs a VAT ID, regardless of sales volume. If your activities bring you into the scope of Dutch VAT, then the tax authority expects you to register, even without a physical presence. Unlike some countries that allow VAT-free operation up to a revenue floor, the Netherlands expects registration based on activity, not volume.

Ecommerce companies that are registered for VAT in the EU have different rules. Businesses that sell goods online to Dutch customers from another EU country must register for VAT when their sales in the Netherlands exceed the threshold of €100,000 per year.

The only exception for VAT rules is for Dutch businesses (not foreign ones) with annual turnovers of €20,000 or less. These businesses can opt in to the small businesses scheme (kleineondernemersregeling or KOR). If your company qualifies for the KOR, you won’t charge VAT to customers and you’re exempt from filing regular VAT returns. The KOR is optional. If you don’t formally apply, the tax authority assumes you’re operating under normal VAT rules, no matter how low your turnover is.

How do businesses apply for a VAT ID in the Netherlands?

The VAT application process depends on where your business is based. For Dutch companies, VAT registration is built into the business setup process. For foreign businesses, it’s a separate, more challenging track, especially if you’re outside the EU. Here’s how to apply, according to the type of business you’re running.

If your business is based in the Netherlands

Register your business with the KVK, which automatically passes your registration to the Dutch Tax and Customs Administration (Belastingdienst).

If the tax office determines you’re an entrepreneur for VAT purposes, which is the default for most trading businesses, it’ll issue a btw-id. You don’t need to apply separately.

If your business is not based in the Netherlands

Register directly with the Belastingdienst. Use the registration form for foreign entrepreneurs, which is available on its website. You’ll be asked to provide:

• Business details (e.g., legal name, address, structure)

• A description of your activities in the Netherlands (e.g., storing goods in the Netherlands, providing services, selling remotely)

Once your registration is accepted, the tax office will issue your Dutch VAT ID and outline your local VAT obligations, including when and how to file returns, when to apply the reverse charge mechanism, and how to handle invoicing.

If your business is established outside the EU, you’ll also need to appoint a fiscal representative in the Netherlands. This representative acts as your local liaison and typically handles filings and correspondence on your behalf.

How is the Dutch VAT ID used in practice?

Your Dutch VAT identification number (btw-id) is a practical tool. You’ll use it every time you handle VAT—for invoicing, cross-border sales, reporting, and compliance. Here’s where it shows up.

Invoices

In the Netherlands, and under EU VAT rules, your VAT ID must appear on all invoices where VAT is involved. For B2B transactions, always list your VAT ID, include the customer’s VAT ID, and specify the VAT amount charged.

Website disclosures

If your business sells products online in the Netherlands, your VAT ID must be clearly displayed on your website for transparency—usually in the footer, on the contact page, or in the legal imprint.

Reverse charge

The reverse charge mechanism shifts VAT reporting from the supplier to the buyer. It’s used in the following situations:

• Most cross-border B2B sales within the EU

• Certain domestic transactions (e.g., subcontracted construction work)

In these cases, your invoice must show your VAT ID and your customer’s and include the phrase “VAT reverse-charged” or “btw verlegd.” This tells both the buyer and the tax authority that no VAT was charged and that the buyer is responsible for accounting for the tax on their end.

VAT OSS reporting

If you’re using the VAT OSS scheme to report cross-border B2C sales—for example, to customers in Germany or France—your Dutch VAT ID is part of your VAT OSS profile and is used to file consolidated returns across the EU.

What happens if your Dutch VAT ID number is incorrect or missing on invoices?

A missing or incorrect VAT ID can make your entire invoice noncompliant. If your invoice doesn’t include the correct VAT ID, then:

• Your customer might not be able to reclaim VAT

• The invoice might be considered invalid during audits

• You could face penalties from the Dutch Tax and Customs Administration

When you fill out an invoice, watch for these common mistakes:

• Using your internal VAT tax number instead of the public btw-id

• Forgetting to add your VAT ID to invoice templates or web checkouts after registration

• Skipping the customer’s VAT ID on cross-border B2B transactions

To stay compliant and avoid credibility issues, ensure that your invoice templates always pull in your public VAT ID (e.g., NL123456789B01). Use invoicing software that stores both your VAT ID and your customers’, and verify customers’ VAT IDs through the EU’s VAT Information Exchange System (VIES).

How can Stripe help Dutch businesses manage VAT compliance?

Stripe handles the operational complexity of VAT, which is especially useful when your business spans borders, channels, or customer types. Here’s how Stripe’s tools support VAT compliance in the Dutch and EU context.

Stripe Tax

Stripe Tax automatically applies the correct VAT rate based on where your customer is and what you’re selling. It checks whether your customer has provided a valid VAT ID; if they have and if the transaction qualifies, Stripe applies the reverse charge mechanism. It also updates logic for exemptions, B2C vs. B2B transactions, and digital vs. physical goods in the background.

EU VAT ID validation

Stripe validates customer VAT numbers in real time and flags invalid or mistyped VAT IDs at the point of transaction. This helps you avoid noncompliant reverse charges and reduces the risk of failed audits tied to unverified cross-border B2B sales.

Invoicing

Stripe Billing and Invoicing automatically include both your VAT ID and your customer’s (if applicable) on every invoice. They support ready-made wording and formats for reverse charges and set up all invoices to meet Dutch and EU standards for VAT documentation.

Threshold tracking

Stripe monitors your cross-border sales and alerts you when you’re nearing VAT registration thresholds outside of the Netherlands. This is useful for Dutch companies that sell abroad and foreign companies that sell globally.

Reporting

Stripe centralizes VAT and tax ID data across transactions. This makes it easier to export what you need for Dutch VAT returns or VAT OSS filings. It keeps a clear audit trail tied to each transaction’s tax treatment.