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Dec 3, 2021 · The Netherlands offers a very good business climate for an optimal European supply chain. Besides these unique selling points, the Dutch government has created a competitive tax regime that stimulates entrepreneurship and foreign investment in the Netherlands.
Economic overview. Excellent country for business and a great place to live. As stated by the World Competitiveness Ranking 2023 of the Institute for Management Development, the Netherlands is the 5th most competitive economy in the world.
The Netherlands offers a wide tax treaty network, a competitive corporate income tax rate, a full participation exemption for capital gains and dividends from qualifying participations and branches, and beneficial measures for highly skilled migrants.
If you supply goods or services in the Netherlands, you must charge VAT, and the amount must be clearly shown on the invoice. Likewise, freelancers and self-employed entrepreneurs must impose the tax.
When a business buys goods or services, it usually pays VAT to the supplier (input tax). When the business sells goods or services, whether to another business or to a final consumer, it is usually required to charge VAT (output tax) unless the supplies are specifically relieved from VAT.
Companies who supply goods and services in the Netherlands must charge value-added tax (VAT – omzetbelasting or, more commonly, Belasting Toegevoegde Waarde – BTW). VAT rates vary depending on the type of goods or services: The standard 21% rate applies to most taxable products
People also ask
How does tax work in the Netherlands?
What are the different types of business tax in the Netherlands?
What are the advantages of the Dutch tax system?
Do Dutch companies pay tax on dividends?
The Netherlands typically does not determine the income of (foreign-owned) Dutch taxpayers based on formulary apportionment. Instead, remuneration for the rendering of services or the sale of goods between related companies is governed by the at arm’s length principle.
