Reclaiming VAT in the Netherlands

Key Takeaways

If you are VAT-registered and make taxable supplies, you can reclaim the VAT you pay on business purchases (input VAT / voorbelasting).
You reclaim input VAT by deducting it on your quarterly VAT return — if input VAT exceeds output VAT, you receive a refund.
You need a valid invoice with all required elements to claim the deduction. No invoice = no deduction.
VAT on exempt activities and private expenses cannot be reclaimed.
Foreign businesses can reclaim Dutch VAT through the EU refund procedure (8th/13th Directive).

Who Can Reclaim VAT?

You can reclaim input VAT if you:

Are registered for VAT (have a BTW-id)
Make taxable supplies (charge VAT on your sales, or make zero-rated/reverse-charged sales)
Have valid invoices documenting the VAT you paid

You cannot reclaim input VAT if you:

Are on the KOR (Small Business Scheme) — you are exempt from VAT entirely, including deductions
Only make exempt supplies (healthcare, education, financial services, etc.)
Are a private individual — only businesses can reclaim VAT

Good to know

Even if your sales are zero-rated (exports, intra-community supplies), you can still reclaim input VAT on your business costs. Zero-rated is not the same as exempt. This is a significant advantage for businesses with primarily international clients.

How to Reclaim: The Standard Process

Step 1: Collect Valid Invoices

Every input VAT claim must be supported by a valid invoice. Check that each invoice contains:

Supplier's name, address, and BTW-id
Your business name and address
Invoice date and unique number
Description of goods/services
Amount excluding VAT
VAT rate and VAT amount
Total amount including VAT

Step 2: Record in Your Administration

Enter each purchase in your bookkeeping software, categorizing:

The expense type
The VAT rate (21%, 9%, 0%, or exempt)
The VAT amount
Whether the purchase is fully, partially, or not deductible

Step 3: Report on Your VAT Return

On your quarterly VAT return:

Enter total deductible input VAT in box 5b (voorbelasting)
If box 5b exceeds box 5a (total output VAT), you receive a refund
If box 5a exceeds box 5b, you pay the difference

Step 4: Receive Payment or Refund

You owe money: Pay by the filing deadline (end of the month following the quarter)
You get a refund: The Belastingdienst processes refunds within 6–8 weeks after filing. The refund is deposited directly to your bank account.

Tip

If you consistently receive VAT refunds (common for exporters and businesses with high capital expenditure), consider setting up a direct debit (automatische incasso) for the quarters where you owe money, and let refunds accumulate. This smooths your cash flow.

What You Can Reclaim

Fully Deductible (100% Business Use)

Purchase	Example
Office equipment	Desk, chair, monitor, keyboard
Computers and software	Laptop, licenses, SaaS subscriptions
Professional services	Accountant, lawyer, consultant fees
Business travel	Train tickets, car rental for business trips
Marketing and advertising	Google Ads, flyers, website development
Business insurance	Professional liability, D&O insurance
Raw materials and inventory	Products for resale, components
Office rent	If VAT is charged (commercial lease)

Partially Deductible (Mixed Business/Private Use)

Purchase	Deductible Portion
Mobile phone (60% business)	60% of VAT
Home internet (30% business)	30% of VAT
Home energy costs (home office)	Proportional to office floor space
Company car (some private use)	See private use correction below

Not Deductible

Purchase	Why
Personal groceries	Not a business expense
Private clothing	Not business-related (unless uniforms/safety wear)
Commuting costs	Not considered business travel for VAT purposes
Exempt purchases	No VAT charged = nothing to deduct
KOR-exempt businesses	KOR businesses cannot deduct input VAT

Special Situations

Pre-Registration VAT

If you incurred VAT-bearing costs before registering your business, you can reclaim the VAT retroactively in certain cases:

Goods still in your possession at the time of registration — deductible
Services received within 6 months before registration — deductible (if directly related to the business you are starting)
Capital goods purchased before registration — deductible (revision rules may apply)

You claim pre-registration VAT on your first VAT return after registration.

Large Investments

When you make a significant purchase (new vehicle, equipment, renovation), the input VAT can be substantial. If it exceeds your output VAT for the quarter, you receive a refund.

Example: You buy a €40,000 delivery van for your business.

VAT paid: €8,400 (21%)
Your output VAT for the quarter: €3,000
Box 5b (input VAT): €8,400 + regular input VAT
Box 5a (output VAT): €3,000
Refund: €5,400+

Company Car

If your BV purchases or leases a company car, the BV can deduct 100% of the VAT on the purchase/lease and running costs. However, if the car is used privately:

A private use correction of 2.7% of the car's catalogue value (incl. VAT and BPM) is added as output VAT in the final return of the year
OR keep a detailed mileage log proving private use is under 500 km/year — in which case no correction is needed

Import VAT

When importing goods from outside the EU, you pay import VAT (invoer-BTW) at customs. This can be reclaimed as input VAT on your VAT return.

Better yet: apply for an Article 23 permit (vergunning artikel 23). This allows you to defer import VAT — instead of paying at the border and reclaiming later, you report the import VAT on your VAT return and immediately deduct it. The net cash impact is zero.

Tip

The Article 23 permit is a significant cash flow advantage for businesses that import regularly. Without it, you pay import VAT upfront and wait weeks for the refund. With it, you simply report and deduct on the same return. Apply through the Belastingdienst.

Reclaiming VAT as a Foreign Business

EU Businesses: 8th Directive Refund

If you are an EU business (registered in another EU member state) and you incurred Dutch VAT but are not VAT-registered in the Netherlands, you can reclaim through the EU refund procedure (8th VAT Directive):

Submit the refund request through your home country's tax portal
The request is forwarded to the Dutch Belastingdienst
Deadline: September 30 of the year following the year the VAT was incurred
Minimum claim: €50 (annual) or €400 (quarterly)
Include scanned copies of invoices above €1,000 (goods) or €250 (services)

Processing time: up to 4 months (can be extended to 8 months if additional information is requested).

Non-EU Businesses: 13th Directive Refund

If you are a non-EU business without a Dutch VAT registration, you can claim through the 13th Directive refund procedure:

Submit the request directly to the Dutch Belastingdienst (paper form or digital)
Deadline: June 30 of the year following the year the VAT was incurred
Include original invoices
A certificate of taxable status from your home country's tax authority is required
Reciprocity may apply — the Netherlands may refuse if your country does not grant similar refunds to Dutch businesses

Time Limits

Situation	Deadline
Regular quarterly deduction	Include in the VAT return for the period the invoice was received (or the next return)
Missed deduction	Can be claimed on a later return, up to 5 years after the end of the year the VAT became deductible
Correction (suppletie)	File a correction within 5 years
EU refund (8th Directive)	September 30 of the following year
Non-EU refund (13th Directive)	June 30 of the following year

Common Mistakes

Not claiming pre-registration VAT — If you bought a laptop, software, or received professional advice before starting your business, you may still be able to reclaim the VAT.
Missing invoices — A bank statement showing a payment is not enough. Without a proper invoice, the deduction is invalid. Request invoices proactively from all suppliers.
Deducting VAT on exempt services — If you pay for financial advice from a bank (exempt from VAT) or health insurance, there is no VAT to deduct.
Forgetting the Article 23 permit — If you import goods regularly, not having this permit costs you cash flow. The application is free.
Not claiming VAT on travel expenses — Hotel stays, train tickets, rental cars, and business meals incurred during business travel are deductible. Keep all invoices.
Deducting VAT on private expenses — The Belastingdienst audits this aggressively. Ensure every claimed deduction has a genuine business purpose.