Who would like to develop growth potentials as a German Amazon seller, can dare the step abroad and reach new target groups there. Of course, the immediate surroundings, i.e. neighboring countries such as the Netherlands, are obvious. However, if you want to start selling your products in the Netherlands, you will have to adjust to the tax laws there.
Antonia KlattLast Updated on 22 October 2021
Delivery Threshold & Storage
Despite setting up a business in the EU, there are 2 main reasons which make a VAT registration (in an additional EU country) mandatory. These 2 reasons are 1. Reaching the Delivery Threshold via Distance Selling and 2. Storage of goods.
As currently there are no Amazon warehouses in Holland, it is likely that most Amazon sellers will need a Dutch VAT ID when reaching the annual threshold limit for distance selling and not because of storage. This means when selling to the Netherlands and reaching the Dutch registration threshold, foreign sellers will have to get a VAT ID in the Netherlands.
Each and every country can set its own delivery threshold limits, in the Netherlands this is € 100.000 net per year.
Find out more about VAT IDs in Europe
VAT ID in the Netherlands
The VAT Identification Number is used throughout Europe to identify EU companies that sell goods and services in the European Union and thus ensure the best possible handling of VAT.
The same therefore applies to the Dutch VAT ID. If the sense and purpose were the same all over Europe, the structure of the numbers would differ depending on the nation.
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The VAT ID in the Netherlands is called “BTW-identificatienummer” or “BTW-number” for short. The number is preceded by the abbreviation NL, followed by twelve digits and letters, whereby the last two characters must always be digits. + and * are also possible as part of the number. This new structure has been in force since 1 January 2020.
New VAT ID for the Netherlands since 1 January 2020
On 1 January of this year, all registered businesses in the Netherlands received new VAT identification numbers. If you sell services to such companies in the future, you must use the new numbers accordingly.
Basically there is only the following to consider:
- Invoices whose invoice date is 31.12.2019 at the latest must still carry the old VAT IDs,
- Invoices issued after 01.01.2020 must carry the new VAT IDs,
- For invoices from the year 2020, but which refer to services from the year 2019, you are free to choose whether to enter the old or the new VAT ID.
Applying for a tax number in the Netherlands
If you want to do business in the Netherlands and need a VAT ID, you have to apply for it at the Dutch tax office. The so-called Belastingdienst of the Netherlands provides various tools to help you with the first steps in the registration process.
The provided tool navigates you through the different steps and explains the topics in more detail via the question marks in case you do not know or cannot answer something.
The tax office responsible is in Heerlen:
Belastingdienst Particulieren/Ondernemingen Buitenland
Tax Office/Limburg/Foreign Office
NL – 6401 DJ Heerlen
Tel.: (+31) 55 5 385 385 (International telephone hotline of the tax office)
Fax: (+31) 45/577 9634
In order to register a VAT identification number, a corresponding form must be requested from the responsible office in Heerlen and filled out.
Register for VAT in Netherlands
Submit VAT Return in Netherlands
NOTE: For urgent cases a provisional number can also be requested.
Sellers who want to expand their potential target group will find the Netherlands a gratifying addition to their current activities. Especially for sellers active in Germany, the Netherlands can be a great place to expand to.
Applying for a VAT identification number is easy in the Netherlands and offers the applicant a lot of help despite the language barrier. This way you can easily adapt your sales activities and keep an eye on the Netherlands as a potential new market.