VAT 9% or 21%: which applies when?

Most SMB owners invoice at 21% VAT. But there are exceptions: magazines, culture, certain foods, and healthcare services. Here are the rules.

The Netherlands has three VAT rates: 0%, 9% (reduced) and 21% (standard). Nearly all B2B work falls under 21%. But a few categories qualify for 9% or 0%.

21% — the standard rate

Consultancy, software, SaaS, design, advisory, marketing, maintenance, licences. When in doubt: 21%.

9% — reduced rate

• Books, newspapers, magazines (print and digital since 2020).
• Food and restaurant consumption.
• Hairdressers, bicycle repair (labour costs).
• Culture: admission tickets, museums, theatres.
• Passenger transport, hotels.
• Certain medicines.

0% — specific cases

• Exports outside the EU.
• Intra-Community supplies to VAT-registered businesses within the EU (reverse charge).
• Shipping, aviation, international transport.

Exempt (no VAT charged, no VAT deduction)

• Medical care (dentists, GPs, physiotherapy).
• Education.
• Financial services (insurance).
• Social and cultural work.

With exempt turnover, you may NOT reclaim the VAT on your purchases. This is fundamentally different from the 0% rate.

Check with the Tax Authority if in doubt

For niche cases: request written confirmation from the Belastingdienst in advance. It costs nothing and provides legal certainty.

See also: invoice requirements, foreign clients.