Why the Netherlands is a Prime Ecommerce Market
Maria
Last Updated on 2 September 2025The Netherlands offers a highly attractive environment for ecommerce businesses. With over 97% of the population using the internet, a strong logistics infrastructure, and a high level of English proficiency, the country presents a lucrative opportunity for online retailers that’s why many sellers decide to have a VAT Registration in the Netherlands.
Key factors that make the Netherlands a top ecommerce destination:
- High Internet Penetration – Almost everyone in the country is online, making digital marketing and online sales highly effective.
- Strong Logistics Network – A well-established postal system ensures fast and reliable deliveries.
- Ecommerce-Friendly Culture – Dutch consumers are accustomed to online shopping, making it easier for businesses to gain traction.
- English Proficiency – Businesses can easily reach a broader audience without language barriers.
If you’re planning to expand your ecommerce business to the Netherlands, understanding VAT regulations is crucial. This guide covers who needs to register for VAT, the required documents, VAT rates, and processing times.
🚨 Update for 2025: VAT Registration in the Netherlands
Since this article was last updated in 2023, several important changes have taken effect:
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No turnover threshold for foreign sellers: Non-Dutch businesses must register for VAT in the Netherlands regardless of turnover. The €10,000 EU-wide threshold only applies to EU-based sellers using the OSS scheme.
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Faster processing times: Dutch VAT registrations are now typically processed within 2–3 weeks, especially if combined with Chamber of Commerce (KVK) registration.
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SME scheme (optional): From January 2025, small EU businesses may qualify for VAT exemption on turnover up to €100,000, depending on local implementation.
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VAT return filing rule: Returns can now only be submitted from the 24th of the following month; earlier submissions may be rejected.
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ViDA reform: The EU’s VAT in the Digital Age (ViDA) package, adopted in March 2025, will gradually introduce real-time reporting and e-invoicing, affecting all businesses trading in the EU.
👉 What this means for sellers: If you sell into the Netherlands, VAT registration is usually mandatory. With hellotax, you can register, file, and stay compliant automatically.
📌 Related: Fiscal representation for non-EU sellers in the Netherlands
Who Needs to Register for VAT in the Netherlands?
In July 2021, new EU-wide VAT regulations were introduced. Instead of country-specific thresholds, the European Union introduced a unified EUR 10,000 distance selling threshold.
Here’s how the rules worked:
- If your annual cross-border sales within the EU are below EUR 10,000, VAT was charged in your country of residence.
- If your sales exceed EUR 10,000, VAT must be registered and paid in the country where your goods or services are delivered.
For ecommerce businesses selling to Dutch consumers, VAT registration was required once the sales threshold is exceeded. Please be aware that this rule not longer applies: Non-Dutch businesses must register for VAT in the Netherlands regardless of turnover. The €10,000 EU-wide threshold only applies to EU-based sellers using the OSS scheme.
Required Documents for VAT Registration in the Netherlands
To register for VAT, the Dutch Tax Authorities require specific documentation. The necessary forms must be completed and submitted along with the following:
For Sole Traders:
- Copy of a valid Passport/ID (valid for at least 3 months from the date of registration).
- Home VAT Certificate (issued within the last 6 months).
For Companies:
Current Appointment of Directors (a legal document confirming the company representative, issued within the last 6 months).
Certificate of Incorporation / Commercial Register Certificate (issued within the last 6 months).
How Long Does VAT Registration in the Netherlands Take?
On average, VAT registration in the Netherlands are now typically processed within 2–3 weeks, especially if combined with Chamber of Commerce (KVK) registration
What VAT Number Will You Receive?
Once your registration is complete, you will receive a Dutch VAT number, which follows this format:
- NL + 9-digit number
- The VAT number format is standardized across all EU member states.
Dutch VAT Rates: How Much Tax Will You Pay?
The Netherlands applies the following VAT rates:
- Standard VAT Rate: 21% – Applies to most goods and services.
- Reduced VAT Rate: 9% – Covers food, books, and certain medical products.
Do You Need a VAT Registration in the Netherlands?
If you’re unsure whether your business requires VAT registration in the Netherlands, we’re here to help!
📅 Book a Free Consultation – Our team will evaluate your business and guide you through the registration process.
📞 Need VAT Registration Assistance? – We offer full support in obtaining a Dutch VAT number. Contact our Sales Team for pricing details and more information.
Final Thoughts
Expanding your ecommerce business to the Netherlands is a profitable opportunity, but understanding VAT requirements is essential. By ensuring proper registration and compliance, you can avoid penalties, optimize your tax strategy, and smoothly scale your operations.
Need expert guidance? Reach out to us today!
