Any company registered with the Dutch tax authorities (see our Dutch VAT registration briefing) as a non-resident VAT trader must report taxable transactions through periodic filings, known as returns.

Any Dutch monthly or quarterly VAT filing is due on the last day of the month following the period end. For companies filing an annual VAT return the deadline is 31^st March of the following year. Foreign businesses may submit their tax return up to 8 weeks after the end of the relevant tax period.

Any Dutch VAT due must be paid in EUR by the same deadlines that apply to VAT return filings. Payment can be made electronically.

In the Netherlands, foreign businesses have been required to submit VAT returns electronically since January 2014.  This is done through the Tax Department’s website http://www.belastingdienst.nl

If there are misdeclarations or late fillings of Netherlands VAT returns, foreign companies may be subject to penalties of up to EUR4,920. Interest is charged on any VAT due. The rate is reviewed by the Tax Department twice yearly. It is currently set at 4% per annum.

There is no statute of limitations for Dutch VAT; however recovery of VAT by the Dutch tax authorities is limited to a period of five years after the time when the company was first required to pay VAT.

If there is a surplus of VAT inputs over outputs (more VAT incurred than charged), then a Dutch VAT credit arises.  In theory, this is due back to the VAT registered business.  Excess input VAT can be reclaimed when filing a VAT return.  Claims should be made within 5 years of the relevant VAT period.

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