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Software Sales Tax in the Netherlands 🇳🇱

How do I solve my tax liability?
Agony Rating
Sales Tax Rate
Taxable Goods
Highest Penalty

How likely am I to get caught for owing sales tax in Netherlands?

Almost certainly, if you’re a B2C business selling to customers in the Netherlands.

What is the sales tax threshold in Netherlands?

There isn’t a threshold for VAT in the Netherlands, you’re liable from your first sale.

Is SaaS taxable in Netherlands?

Yes. You owe tax for the sale of cloud software subscriptions to customers in Netherlands.

Are software downloads taxable in Netherlands?

Yes. You owe tax for the sale of software downloads to customers in Netherlands.

Are eBooks taxable in Netherlands?

Yes. You owe tax for the sale of eBooks to customers in Netherlands.

Are digital downloads taxable in Netherlands?

Yes. You owe tax for the sale of digital downloads to customers in Netherlands.

Registering for VAT in the Netherlands

😐🌶️ It's not that complicated

Whether or not your business has a physical presence in the Netherlands, your B2C software sales are taxable from your first sale. 

If you sell into more countries across the EU, and your sales exceed €10,000 a year, you can register for the VAT MOSS system.

Filing & Remittance of VAT in the Netherlands

😐🌶️ It's not that complicated

Filing frequency: Quarterly

The process for filing and remitting sales tax payments in the Netherlands is straightforward. 

However, if you are based in the EU and serve business customers in the Netherlands and other EU member states, it does come with quite a bit of admin. 

In this instance, you’ll need to complete a separate filing called the EC Sales List (ESL). This is so you can document and report all of your sales to VAT-registered customers, in the EU, in one go.

Penalties for VAT non-compliance in the Netherlands

😐🌶️ It stacks up

Penalties for non-compliance in the Netherlands are treated a bit differently to the penalties in other EU member states. 

This is because the penalty rate depends on the behavior giving rise to the error, rather than the size of the error. For example, a “careless” error is punishable by a penalty of EUR 5,278, where fraud can incur a fine of 100% of the tax due and 25-50% for gross negligence.

In the Netherlands, all cases of non-compliance may be seen as a criminal act and may be sentenced with prison or fines.

Had enough yet? There's more…

How to become sales tax compliant globally 🗺

Three Routes to Compliance for SaaS Executives

SaaS executives have a choice of three routes to global tax compliance. Get the guide to walk through the options for your team.

Download the guide »

Don't Worry, Ask Hugo

As CFO of Paddle, Hugo's finance team manages global tax compliance for $100M's of ARR from over 2,000 software businesses. Ask your questions in our live webinar.

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How can Paddle help?

Paddle can take all your responsibility & liability for sales tax off-your hands. Our global entities, finance team, and $160k+ year spend on agents, tooling, and accountants is ready for you.

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