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BTW increase 1st October

On October 1, 2012 by Dutch Umbrella Company

As part of the 2013 budget measures in The Netherlands, the general VAT rat increased from 19% to 21% on the 1st October 2012.

What is the general VAT rate?

The general VAT rate applies to all goods and services that are not exempt from VAT or taxed under the 6% or 0% VAT rate. The 6% VAT rate remains unchanged

When do I apply the new VAT rate?

You apply the 21% rate to goods and services provided on or after the 1st October. If the goods and services were supplied before the 1st October, then the 19% rate is applied. The date of invoice has no effect on this decision. Similarly, if goods and services were provided on or after the 1st October but invoiced at the 19% VAT rate, then the additional 2% VAT needs to be calculated and invoiced.

How do I apply the new VAT rate to timesheets and payroll invoices?

If the work was completed before the 1st October, the old VAT rate of 19% is applied, regardless of the invoice date. If the work was completed on or after the 1st October, then the new VAT rate of 21% is applied.

For timesheets that include work completed before and after the 1st October, we advise the use of separate timesheets and invoices.

Key terms:

VAT (Value Added Tax) : BTW (Belasting Toegevoegde Waarde).