Dutch VAT changes for 2012

Sat 8th Oct 2011

A number of reforms of the VAT system in the Netherlands have been announced. These are primarily designed to bring the Dutch VAT system more in line with the European Union VAT law (‘Directives’). Please click here to learn more about Netherlands VAT compliance and tax rates.

The rule changes include the following amendments:

VAT Return changes

Businesses must notify the tax authorities immediately of any changes to prior returns due to errors or for any other reason. Click here to read about the rules on VAT returns within the European Union.

Automatic loss of VAT registrations

If there is no activity for more than two years on a VAT registration, which means Nil return filings, the VAT number will be closed by the tax office.

VAT triangulation rule changes

If one of the parties in a Dutch VAT triangulation transaction is resident for tax purposes in the Netherlands, then it must make a separate intra-community filing. This is at odds with the VAT Directive, which frees the middle party in any simplified triangulation transaction from such an obligation. The Dutch tax code will therefore be changed.