Common mistakes that that cost you your VAT deduction
Another round of quarterly tax returns — and once again, common mistakes that prevent you from deducting the VAT you paid or make it risky to do so: during an audit, the Belastingdienst may reject the deduction, and you will have to pay the amount back.
The basic rule is simple: you can deduct VAT on business expenses for which you received a correct invoice.
*If you are on the KOR, you cannot deduct VAT on expenses at all.*
So what mistakes make an invoice invalid?
1. A purchase over €100 — but you only have a till receipt
A till receipt counts as a simplified invoice and is allowed when the amount does not exceed €100 including VAT, and the receipt itself shows the date, the seller’s name and address, a description of the goods, and the VAT amount (or at least the rate from which it can be calculated).
Above this amount, you need a full invoice — with your (business) name and address, and the amount excluding VAT, the rate, and the VAT amount listed separately.
A regular receipt does not show your (business) name and address. So a laptop for €1,200 or office furniture with only a receipt puts your VAT deduction at risk.
Exception: fuel receipts paid for by payment or credit card, or with a fuel card.
What to do: when paying at the till or buying online, ask for an invoice made out to your business.
2. Subscriptions and purchases through a personal account in the Netherlands
When an account or subscription is set up as a consumer account, the invoice often shows only the price “all-inclusive”, without VAT listed separately. Deducting VAT that is not listed separately is risky (the exception is a simplified invoice up to €100 including VAT, which shows at least the rate).
What to do: in your subscription and online shop accounts, choose the “zakelijk” / business account type, enter your business name, address and VAT number (btw-nummer), and check that VAT is listed separately on the invoice.
3. Only an order confirmation instead of an invoice
A common example is bol.com: a payment overview (betaaloverzicht) instead of an invoice (factuur), with no VAT listed separately. You need to download the actual invoice from your account.
4. Invoices from abroad without your BTW number
In the Netherlands, your business name and address are usually enough for an invoice. This may not be enough with foreign suppliers.
If the supplier has no office or branch in the Netherlands and you are a Dutch entrepreneur, VAT is usually reverse-charged to you (btw verlegd): the supplier does not charge VAT, and you report it yourself on your tax return. In this case, an EU supplier must put “btw verlegd” on the invoice (for goods: “0%, intracommunautaire levering”) and include your btw-nummer (NL…B…).
If your VAT number is not listed in your account, the supplier will usually treat you as a private individual and charge you 21% Dutch VAT. You will most likely not be able to deduct this VAT on your tax return.
What to do: enter your full BTW number, including NL at the beginning, in the payment settings for the foreign service. For invoices with VAT that you have already received, ask for a credit note and a corrected invoice, if possible.
Be careful: *if you are on the KOR*, for purchases from abroad using an NL BTW number, you must file a separate one-off VAT return (incidentele aangifte) and pay the reverse-charged VAT without being able to deduct it. So if you use the KOR, it is worth considering each situation involving a purchase from abroad separately.