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Annual compliance filing requirements for a Dutch BV

19 Jun 2024

By Anand Bhugra, Client Relationship Director, India and Middle East

Registering your business is only the first step in ensuring you meet the necessary regulatory reporting requirements in the Netherlands.

New Dutch BVs (private limited companies) also need to handle annual compliance filings, such as VAT, corporate income tax return, and filing annual accounts at the Chamber of Commerce in accordance with statutory deadlines.

Here, we summarise the key steps required to ensure you comply with Dutch company regulations.

Preparing and filing annual accounts

Once you’ve registered your Dutch BV with the Chamber of Commerce, it’s the duty of the company director to file an annual account every year.

The statutory deadline to file is within 12 months after the financial year-end.

Annual accounts, once approved by company directors, must be adopted by the company’s shareholders on a yearly basis. These need to be submitted to the Chamber of Commerce within eight days.

If you aren’t able to file accounts within the required timeframe, the company director is responsible for filing a provisional account until the final accounts are ready to submit.

If you’re running a Dutch company from outside of the Netherlands, engaging a local service provider could help you avoid hassles and headaches.

Corporate income tax in the Netherlands

Dutch company law mandates that your new BV or NV (Naamloze Vennootschap, i.e. a public limited liability company) needs to file corporate income taxes for the financial year-end.

The Netherlands business tax rate depends on your taxable profit in the year:

  • If your taxable profit is less than €200,000 in 2024, then your tax rate is 19%
  • If your taxable profit is more than €200,000 in 2022, the corporate income tax rate is €18,000 plus 25.8%

The corporate income tax return must be filed within five months following year-end. However, an extension may be possible once permission is granted in advance.

VAT (Value Added Tax) in the Netherlands

Businesses are subject to a Dutch rate of VAT; this is also known as a ‘BTW’.

VAT in the Netherlands is a consumer tax. Essentially, the end user bears the tax. If your Dutch company is registered for VAT, you don’t need to pay tax on any goods and services required for your company’s operations.

The standard VAT rate for most goods and services is 21%. You’re required to file your VAT return within 30 days from the end of the reporting quarter.

For Q1, which runs from January to March, the deadline for filing a VAT return is 30 April. You’re required to file a return even if you’ve not done any business.

Invoicing VAT to clients and customers

When you issue invoices, you need to share your Dutch VAT number on your invoice.

And, when you receive VAT payments from clients and customers, you need to set aside the VAT amount because it needs to be paid back to the tax authorities.

Paying VAT to suppliers

When you get a bill from a supplier, you need to receive an invoice that shows their VAT number. As a company registered for Dutch VAT, any VAT you pay upfront will be refunded by the Dutch tax authorities.

Reconciling VAT

At the end of every quarter, you need to make sure that you file your VAT on time, ensuring that you get back the money you spent on VAT. Otherwise, you must pay back the surplus.

Dutch VAT – how does it work?

If the amount of VAT that you received from your clients’ invoices is more than the amount that you paid for the supplier invoices, you need to pay the difference to the tax authority.

If the amount you paid for supplier invoices is more than what you received from your clients’ invoices, you will be subject to a refund from the tax authority.

To discuss your Dutch company filing needs, please request more information from our team of experts. Feel free to contact us here.

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