Netherlands taxpayers need to prepare for new VAT portal

Dutch authorities are urging taxpayers to switch to new ways of managing VAT ahead of the deadline. 

Taxpayers in the Netherlands can already use the new VAT portal. Alternatively, they can elect to file VAT returns via specified software or through an independent tax provider. 

Computer glitches and VAT fine errors

The Netherlands VAT filing is due for an upgrade.

A number of Dutch taxpayers recently received erroneous charges and fines. According to authorities, the problem was caused by a computer error. The existing Dutch system was unable to manage the high rate of VAT returns. 

And in 2020, Finance Minister Hans Vijlbrief conceded that the Netherlands could not adjust VAT rates because of limitations to the tax authority’s technology. 

VAT compliance is your responsibility 

Dutch authorities warn that whether you file your VAT returns using administrative software or via the new portal, or if you outsource your VAT compliance to a tax provider, you are ultimately responsible for your own VAT.  

Taxpayers therefore need to ensure they have processes in place that ensure accurate and comprehensive VAT returns. When outsourcing your VAT to an independent tax provider, make sure they provide transparent and effective VAT solutions. 

What about VAT refunds in the Netherlands?

Businesses that are registered for VAT outside of the Netherlands may also engage with the Dutch VAT system for the purposes of claiming a VAT refund.

The precise mechanism for claiming a VAT refund on the Netherlands depends on whether the taxpayer is based inside oru outside of the EU. 

Contact a VAT specialist for more detailed information relating to your specific business. 

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