Accounting for your Business

Accounting for e-commerce

This means you charge VAT on your products/services, file VAT returns every 3 months, and display your VAT ID on invoices and your website. Specific invoicing requirements may apply depending on your industry.
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It's crucial to use this unique number when communicating with customers and suppliers.

Depending on the legal entity there are a few other administrative issues to take care of. A sole proprietorship, the administration burden is slightly lower than a BV.

When starting a business, you'll receive a VAT identification number (btw-id) from the Tax Administration. Your VAT number, officially called the VAT identification number, indicates that you're a registered VAT entrepreneur.

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Certain goods and services are exempt from VAT, meaning you neither pay nor deduct VAT. You can't claim refunds for VAT related to exempted items. Exemptions include:

Sale or rental of old immovable property

Education and healthcare

Sports, cultural, and financial services

Patent

Childcare and care services

Fundraising activities

Read about VAT on kvk site

The Netherlands Tax Administration (Belastingdienst) imposes requirements on the records you keep. Your Dutch ecommerce business should keep an orderly accounting and the books should be kept at least 7 years.

Requirements for your business records

Invoices

Transaction statements

Time Traking records

Travel records for car and/or public transport

Business correspondence such as letters, emails, quotations, contracts, brochures, and faxes

Cash flow records

Contracts and correspondence with clients and suppliers

Travel records for car and/or public transport

Taxes, both VAT and income tax

In a Dutch BV you will need to submit an annual corporate income tax return. This is usually done by an accountant. Based on this it will be determined how much corporate tax you need to pay. If you are not running a profit yet, you will still need to file for this tax return.

The accountant will draft a annual financial report (annual accounts). You will check this and afterwards this will be deposited at the chamber of commerce. Failing in doing so can lead to extended personal liability for the company's actions, so it is crucial to do this.

Optionally, in case you have one or more employees on the payroll, you will need to register as an employer and keep a salary administration.

Payment Solutions

To make sure people have a good time on your website and buy things, it's important to let them pay in ways they like. By offering different payment options you can make it easier for people to buy things from your website in the Netherlands.

iDeal

In the Netherlands, most people use a payment method called iDeal, which is like a debit card. It's cheaper for you, the store owner, compared to credit cards.

Know iDeal

Mollie

This payment gateway sends registrants to a secure page at Mollie.com for payment processing. It handles online and in-person payments, subscriptions, financing, reconciliation, and fraud prevention.

Know Mollie

Klarna

Klarna offer to your customers a buy now, pay later (BNPL) service

Know Klarna

* site in dutch

Buckaroo

Buckaroo has Pay by Bank, a new payment method in the Netherlands. It's a cheaper option than iDEAL.

Know Buckaroo

Adyen

Adyen is a global payment company that helps businesses accept payments worldwide.

Know Adyen

Small Businesses Scheme (Kleineondernemersregeling or KOR)

The Small Businesses Scheme in the Netherlands is for businesses with a turnover below €20,000.
If you qualify, you don't have to pay or report VAT. You need to apply to the Dutch Belastingdienst to use this scheme.

The KOR is based on your total sales, including VAT, but certain types of sales, like medical services or sports services, don't count toward the limit.

Keep in mind, though, you still need to file and pay other taxes, like income tax, on time.

With the KOR you don't need to send invoices, but you can if you want. If you do, don't mention VAT percentage or amount. Instead, include "factuur vrijgesteld van OB o.g.v. artikel 25 Wet OB" (invoice exempt from VAT under Article 25 of the Turnover Tax Act). With the KOR, you're exempt from standard invoice requirements.

Learn more about KOR

Are you importing or exporting goods through your website?

Answers to the burning questions in your mind.

Inscribe your business IOSS

IOSS (Import One Stop Shop) is a system introduced in 2021 for importing goods into the EU. It simplifies the process for sellers by allowing them to declare and pay VAT on their goods through a single portal. This benefits buyers, who only need to pay VAT at the time of purchase and avoid additional fees upon delivery. If a seller isn't registered with IOSS, buyers may have to cover VAT and customs clearance fees charged by carriers during EU imports.

Read more about IOSS

Deliver goods from outside the EU

If you run an online store importing goods from China to deliver to private individuals in a EU country, you calculate and declare VAT in the destination EU country. You can simplify this process using the Import Regulation's one-stop system. If trading via a platform, follow specific guidelines. Certain customers, like private individuals or certain types of entrepreneurs, may not need to file a VAT return unless their purchases exceed a threshold amount. If so, the Import Scheme cannot be used.

Read about tax on importing from outside the EU

Deliver goods within the EU

If you supply goods to another EU country and your customers don't file a VAT return, such as selling via a webshop to private individuals in Germany, you may need to charge VAT based on the destination country's rate.

Read about tax on importing from the EU

Provide services to private individuals within the EU

You often have to charge the VAT of the EU country where you provide your services. You can declare the VAT in a simplified way via the IOSS.

Read about tax on services within the EU

Have a digital platform or trade via a digital platform?

Depends on that the platform use the Union or Import Regulations or not, then the Dutch rules for invoicing apply and not the rules of the country where delivery takes place. This means that the platform does not have to issue an invoice for VAT or it has to.