Filing your VAT returns as an entrepreneur

The first quarter of 2023 is already over and that means it’s time for entrepreneurs to file their VAT returns! These are the most important points to consider when filing, according to Blue Umbrella.

When to file a VAT return

The easy answer is: always. You must always file a VAT return if a return is ready for you (in your digital portal for entrepreneurs on the Belastingdienst website). This is the case even if you do not have to pay anything or are due a VAT refund. If there are no transactions to report, you file a so-called “nihil declaration” or zero declaration and you do not have to fill in anything else.

What do you need?

When filing your VAT return, you should first make sure you have got your sales / expenses up to date in your own records. Also, make sure that you have uploaded all your invoices.

If you bought a car for business purposes, or invested more than 2.400 euros in your company, you might be eligible for the kleinschaligheidsaftrek (KIA), which is an extra tax perk. So, keep all those records as well.

One Stop Shop

If you are liable for taxes in multiple countries, there is a regulation that might make filing your taxes easier. From July 21, 2021, companies supplying goods and / or digital services to consumers in other countries within the EU can use the One-Stop-Shop facility (OSS) for their VAT declaration.

The limit

If you are an entrepreneur who makes over 10.000 euros in other EU countries, you need to pay the local VAT rate to the tax office of the country where your customers are located. This obligation might make your tax filing more difficult since you need to register separately in each country and declare and pay VAT there.

To reduce your company's administrative burden, you can apply for the OSS regulation. Entrepreneurs who register for this can declare and pay the VAT due in their own country through a single filing at their own tax office.

In the case of a Netherlands-based company, the entrepreneur will pay all VAT to the Dutch tax authorities (Belastingdienst), who will then ensure that the VAT received reaches the correct EU member states.

Getting an extension

You can only request an extension for filing VAT returns in exceptional situations. The Dutch tax authorities will check whether there is a genuine emergency. In all other cases, you must file your return on time. If you do not file the VAT return on time, you will receive a fine of 68 euros.

Different options

You can file your tax return digitally on the Belastingdienst website if you have a DigiD digital identity or eHerkenning. You may also use your own tax return or accounting software, or you can ask a tax intermediary for help.

The tax advisors at Blue Umbrella help entrepreneurs with filing the OSS tax in the Netherlands. Their experienced team will be happy to take this administrative burden off your hands.