You supply goods or services in the Netherlands. You are not usually involved with Dutch VAT. In such cases the VAT is usually reverse-charged to the client. This means that your client pays the VAT and not you. This applies in the following cases:
- Your client is an entrepreneur who is established in the Netherlands or who has a permanent establishment here.
- Your client is a legal entity (for example, a plc or a foundation) that is established in the Netherlands.
If the reverse-charge mechanism applies to you, then you may not include any VAT on your invoice. You should state on the invoice 'VAT reverse-charged'. You are permitted to deduct the VAT charged over any related costs you have incurred.
Example of reverse-charging relating to goods
You are a German entrepreneur, you have goods in Rotterdam and you supply these to an entrepreneur established in the Netherlands. The VAT is reverse-charged to your client. You issue an invoice without VAT and you state ‘VAT reverse-charged’ on the invoice.
Example of reverse-charging relating to services
You are a Belgian entrepreneur and you carry out painting work in a building belonging to a Dutch entrepreneur. Your client is established as entrepreneur in the Netherlands. The VAT is reverse-charged to the client. You issue an invoice without VAT and you state ‘VAT reverse-charged’ on the invoice.