Dutch VAT, known locally as BTW, lands on nearly every purchase you make in the Netherlands, yet plenty of freelancers and small firms still work it out by hand. That is where mistakes creep in: the wrong rate, or the price before VAT muddled with the price after. This guide sets out the rates for 2026, shows how to move between net and gross in both directions, and explains where VAT ends and your trading margin begins.
The Dutch VAT rates in 2026
The Netherlands runs three VAT rates, administered by the Belastingdienst:
- 21 percent, the standard rate. The default when no lower rate is written into law: electronics, clothing, fuel, most services and the bulk of goods.
- 9 percent, the reduced rate. Food, water, medicines, books and newspapers, passenger transport, and culture, media and sport.
- 0 percent, the zero rate. Mainly exports and intra-EU supplies to businesses in other member states.
| Rate | Type | Examples |
|---|---|---|
| 21% | standard | electronics, clothing, fuel, most services |
| 9% | reduced | food, water, medicines, books, passenger transport, culture |
| 0% | zero | exports, intra-EU supplies to businesses |
The rate follows the product or service, not the seller. A single receipt can carry one line at 21 percent and another at 9 percent. When a particular item is in doubt, the source to check is the Belastingdienst guidance, since the lists of reduced-rate goods shift over time.
What changes in 2026
The biggest change for 2026 is accommodation. From 1 January 2026, providing short-stay lodging, such as hotels, guesthouses, furnished holiday homes and static caravans, moves to the standard 21 percent rate rather than 9 percent. The Belastingdienst confirms the rise applies from 1 January 2026. Camping stays an exception: if you rent out a pitch where the guest brings their own tent, caravan or camper and can use the site facilities, the 9 percent rate still applies.
The increase once planned for culture, media and sport has been dropped. Under the law preserving the reduced rate for culture, media and sport, books, newspapers, museums, concerts, sports lessons and subscriptions stay on the reduced 9 percent rate. For anyone working in those sectors, nothing has changed.
From the net price to the gross price
The price before VAT is the figure your margin sits on. The gross price is what the customer pays. To add the tax, multiply the net price by one plus the rate:
- A net amount of 100 euro at the standard rate: 100 times 1.21, which is 121 euro, of which 21 is VAT.
- A net amount of 100 euro at the reduced rate: 100 times 1.09, which is 109 euro, of which 9 is VAT.
Going the other way is just as common: you have a gross price and want the VAT inside it. Here you divide rather than strip off the percentage. A gross price of 121 euro at 21 percent is 121 divided by 1.21, so 100 euro net and 21 of VAT. Taking 21 percent straight off 121 would give 95.59 euro, a wrong answer that turns up in rushed quotes. The BTW calculator from National Calculators runs both directions for you at the rate you pick.
The VAT sits as a fixed share inside every gross price. Inside a gross price of 100 euro, that share works out per rate as follows:
| Rate | Gross | Net | VAT part |
|---|---|---|---|
| 21% | 100.00 | 82.64 | 17.36 |
| 9% | 100.00 | 91.74 | 8.26 |
| 0% | 100.00 | 100.00 | 0.00 |
Note that the VAT part at 21 percent is 17.36 euro, not 21 euro. The 21 percent is charged on the net figure (82.64), not on the gross price, which is exactly why you divide rather than subtract.
Output VAT and input VAT
For a business, VAT is neither a cost nor income: it passes through. You charge VAT on sales and reclaim the VAT paid on business purchases, the input VAT. At each return you pay the difference, and when purchases with VAT outweigh sales in a period you are left with a refund. The bookkeeping keeps the two sides apart, but the principle stays simple.
The small business scheme
Unlike a business on standard VAT, anyone in the small business scheme, the kleineondernemersregeling or KOR, does not charge VAT on invoices and does not reclaim it on purchases. The scheme is open to businesses with annual turnover up to 20,000 euro. Stay under that figure and you can opt in and skip the VAT return. Go over it and the scheme ends, so it pays to watch turnover during the year rather than only at the end.
VAT and margin are not the same thing
VAT is worked out on the selling price, while your margin is worked out on cost. A trader who buys an item for 50 euro net and sells it for 70 euro net makes 20 euro of profit, which is a 28.6 percent margin on the selling price, or a 40 percent markup on cost. The 21 percent VAT is added afterwards, on the net selling price, and leaves the margin untouched. Keeping the two sums apart stops the idea that a 21 percent discount cancels the VAT, which it does not.
For purchases from suppliers outside the euro area, the exchange rate matters too. A supplier billing in dollars or pounds compares best after conversion: the currency converter gives the euro amount from the European Central Bank reference rates, on which you then apply import VAT.
Frequently asked questions
What is the standard VAT rate in the Netherlands in 2026?
The standard rate stays at 21 percent. It applies by default to every good and service the law does not assign to the reduced or zero rate.
How do I remove VAT from a gross price?
Divide the gross amount by one plus the rate. At 21 percent divide by 1.21 and at 9 percent by 1.09. The VAT portion is the gap between the gross price and the net amount you get.
Does the VAT rate on hotels change in 2026?
Yes. From 1 January 2026 the accommodation rate rises from 9 to 21 percent, for hotels, guesthouses and furnished holiday homes. Camping where the guest brings their own tent or caravan stays at 9 percent.
Does culture stay on the reduced rate?
Yes. The planned increase for culture, media and sport has been dropped, so books, museums, concerts and sport remain at 9 percent in 2026.
The rates and rules cited come from the Belastingdienst and the Eerste Kamer. This article is general information and is not tax advice.