What are the 3 annual filing requirements for a Dutch B.V.?
Filing Annual Accounts: Dutch BV Taxation
Registering your business in the Netherlands isn’t the end of the process, you’ll need to take care of the financial aspects of your new company.
That means handling the Dutch company’s annual compliance such as filing VAT, corporate income tax return, file annual accounts at the Netherland chamber of commerce according to statutory deadline.
Preparing and file Dutch company's Annual Accounts
Once you’ve registered your Dutch BV with the Chamber of Commerce, it is the company director’s responsibility to file an annual account each year.
The statutory deadline to file is within 12 months after the financial year-end.
Annual accounts have to be approved by company directors, then adopted by the shareholders on a yearly basis.
Once these have been adopted by the shareholders, the accounts must be submitted to the Chamber of Commerce within eight days.
If for some reason you are not able to file the accounts within the required timeframe, the director of dutch company is responsible for filing a provisional account until the final accounts are ready.
If you are running your dutch company from your own country, engaging a local company secretary could help you avoid hassles and headaches.
Netherlands Corporate Income tax
Dutch company law mandates that your new B.V. or N.V. needs to file corporate income taxes of the financial year-end.
The Netherlands business tax rate depends on how much business you do in the year:
- If your taxable profit is less than €395,000 in 2022, then your tax rate is 15%
- If your taxable profit is more than €395,000 in 2022, the corporate income tax rate is €59,250 plus 25.8%
Sources from Dutch tax authority
The Corporate income tax return is required to file within 5 months after the year end. Extension is possible with permission.
Netherlands VAT: Value Added Tax
Businesses are subject to a Netherlands VAT, this is also known as a “BTW” in Dutch.
The value added tax in the Netherlands is a consumer tax. In essence, it is the end user that bears the tax.
If your dutch company is registered with VAT, you do not need to pay the VAT for all of the goods and services that you pay for the operation of your company.
The standard VAT Netherlands rate for the majority of goods and services is 21%. You are required to file your VAT return within 30 days from the end of the Quarter.
For Q1 which runs from January to March, the deadline for filing a VAT return is April 30. You are required to file a return even if it’s for nothing.
Invoicing VAT to Clients and Customers
When you issue invoices you need to share your Netherlands VAT number on your invoice.
And when you receive VAT payments from clients and customers, you need to set aside the VAT amount because it needs to be paid back to the tax authorities.
Paying VAT to Suppliers
When you get a bill from a supplier, you need to receive an invoice that shows their VAT number.
As a company registered with a Dutch VAT, any VAT you pay upfront will be refunded by the Dutch tax authorities.
When you’re given a VAT number from a supplier, you should double-check that it’s valid by visiting the VIES VAT number validation website.
Reconciling VAT
At the end of every quarter, you need to make sure to file your VAT on time to ensure that you get back the money you spent on VAT or pay back the extra. This is how the VAT Works:
If the amount of VAT that you received from your client invoices is more than the amount that you paid for the supplier invoices, you need to pay the difference to the tax authority.
But if the amount you paid for the supplier invoices are more than what you received from your clients invoices, you will be subject to a refund from the tax authority.
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