Main VAT and other indirect tax developments in the Netherlands

Netherlands Confirms Domestic B2B E-Invoicing and Digital Reporting Roadmap Aligned with ViDA

• On 11 September 2026, the Dutch government confirmed plans to extend mandatory structured e-invoicing and digital reporting beyond ViDA’s minimum cross-border scope. Domestic B2B structured e-invoicing would begin on 1 July 2030, while domestic transaction reporting would follow on 1 July 2031. Intra-Community transaction reporting, including acquisitions, would start on 1 July 2030 and replace aggregated ICP listings with near-real-time reporting on an individual transaction basis under the proposed implementation roadmap for businesses operating nationally. [vatupdate.com], [vatupdate.com]
• Only invoices compliant with European standard EN 16931 are expected to qualify. The government has not yet decided whether Peppol will be mandatory, creating an important architectural question for businesses. Taxpayers under the Dutch small-business scheme, generally covering annual turnover up to EUR 20,000, would remain outside domestic requirements. Larger businesses should assess invoice formats, master data, tax determination, trading-partner connectivity, ERP integration, corrections, archiving and reconciliation between invoices, accounting records and reported transaction data. [vatupdate.com], [vatupdate.com]
• A public consultation on draft legislation is expected in autumn 2026, followed by submission to the House of Representatives before the 2027 summer recess. The government aims to complete the parliamentary process before 1 July 2028, providing two years for implementation and testing. Businesses should participate in consultation, identify domestic and intra-Community flows, and avoid country-specific solutions that cannot support ViDA. Particular attention is needed for acquisitions, invoice timing, corrections, self-billing, VAT groups and interoperability. [vatupdate.com], [vatupdate.com]

Related articles:

• Netherlands Plans Mandatory Domestic E-Invoicing and Digital VAT Reporting by 2031

Dutch Court Allows Pro Rata VAT Deduction on Legal Costs in Criminal Investigations

• The Hague District Court allowed pro rata input VAT deduction on legal and advisory costs incurred during criminal investigations concerning bribery and corruption. The company had incurred substantial costs addressing investigations, settlements and employee-related proceedings. The tax inspector argued that some services were directly connected with prohibited conduct. The court found insufficient evidence of such a direct link and concluded that the services supported continuation of the group’s broader economic activities, making the associated VAT deductible under its pro rata. [vatupdate.com], [vatupdate.com]
• The judgment shows that the VAT treatment of investigation costs depends on the direct and immediate link established by objective facts. Allegations of misconduct do not automatically make legal services nondeductible. Businesses should determine whether advisers protect the enterprise’s overall activities, specific taxable supplies, individual employees or legally prohibited conduct. Engagement letters, invoices, work descriptions and internal approvals should demonstrate the business purpose. Mixed-use costs may require allocation or pro rata deduction rather than complete recovery or denial. [vatupdate.com], [vatupdate.com]
• The court annulled the additional VAT assessments, penalties and interest adjustments. Businesses facing regulatory or criminal investigations should review whether input VAT on legal, forensic and advisory fees was blocked too broadly. Claims remain subject to limitation periods, evidence requirements and the taxpayer’s applicable deduction percentage. Companies should separate employee defence, corporate representation, settlement work and compliance remediation where possible. The tax authority may appeal, so taxpayers should monitor proceedings and preserve protective positions where amounts are material. [vatupdate.com], [vatupdate.com]

Related articles:

• Dutch Court Allows Pro Rata VAT Deduction on Criminal Investigation Legal Costs

Dutch Lower House Approves First ViDA Single VAT Registration Legislation

• The Dutch House of Representatives approved legislation implementing the Single VAT Registration pillar of ViDA, and the bill now proceeds to the Senate. It expands the One-Stop Shop, extends mandatory reverse-charge treatment and introduces a special OSS arrangement for qualifying cross-border transfers of own goods. The package aims to reduce foreign VAT registrations created by stock movements and local supplies. It also phases out the existing call-off-stock simplification as the replacement transfer scheme becomes available throughout the European Union. [vatupdate.com], [vatupdate.com]
• Businesses should map registrations maintained for inventory transfers, installation supplies, domestic sales from foreign stock and other transactions potentially covered by expanded OSS or reverse-charge rules. The new own-goods scheme could remove some registrations, but only where eligibility, reporting and evidence requirements are satisfied. Companies must distinguish the new ViDA reverse charge from existing Dutch provisions because legal basis and reporting consequences may differ. Supply-chain, ERP, tax-coding, reporting and registration decisions should therefore be reviewed together comprehensively. [vatupdate.com], [vatupdate.com]
• Implementation is phased. The Union OSS expands for certain energy supplies from 1 January 2027. Broader OSS coverage, expanded reverse-charge rules and the transfer-of-own-goods scheme apply from 1 July 2028. New call-off-stock arrangements can no longer begin from that date, while existing arrangements receive a twelve-month transition before full repeal on 1 July 2029. Businesses should monitor Senate approval, inventory current arrangements and develop migration plans for stock held in other European Union Member States. [vatupdate.com], [vatupdate.com]

Related articles:

• Single VAT Registration Implementation Bill Passed in the House of Representatives
• Digital VAT Directive Implementation Act: Single VAT Registration Approved

Dutch Tax Plan 2027: Higher VAT on Floriculture and Balloon Rides

• The Netherlands’ 2027 Tax Plan proposes abolishing the 9 percent reduced VAT rate for ornamental horticulture products and hot-air balloon rides from 1 January 2028. Flowers, plants, bulbs, nursery products, Christmas trees and qualifying balloon services would consequently move to the 21 percent standard rate. The measure remains part of the legislative tax package rather than current law. For balloon rides, a transition rule links the applicable rate to performance, preventing prepayment from preserving 9 percent treatment. [vatupdate.com], [vatupdate.com]
• Growers, wholesalers, retailers, florists, online sellers and balloon operators should model pricing, margin, demand and contractual effects. Product tax codes, catalogues, point-of-sale systems, invoices and customer communications would require updating before commencement. Businesses should distinguish domestic transactions from exports that may continue qualifying for zero rating where legal conditions are met. Advance payments, vouchers, subscriptions, bundled supplies, returns and credit notes need specific rules so the correct rate follows the relevant supply and transition provisions consistently. [vatupdate.com], [vatupdate.com]
• The proposed rate increase is scheduled for 1 January 2028, giving affected sectors time to prepare, but parliamentary approval and final transitional wording remain outstanding. Businesses should not change current rates prematurely. They should monitor amendments to the Tax Plan, map affected products and services, quantify commercial effects and test systems during 2027. For balloon rides performed in 2028, the proposed rule applies 21 percent even where payment was received earlier, requiring appropriate invoicing and VAT adjustments. [vatupdate.com], [vatupdate.com]

Related articles:

• Tax Plan 2027: VAT, Excise, and Customs Changes
• Dutch Cabinet’s 2027 Tax Plan: VAT and Transfer Tax Changes
• Tax Plan 2027: VAT and Excise Measures

Dutch Supreme Court Denies VAT Bad-Debt Relief for Telecom Fiscal Unity

• The Dutch Supreme Court held that VAT bad-debt relief cannot be claimed merely because the supplier and creditor belong to the same VAT fiscal unity. A direct contractual link must exist between the unpaid amount and the specific taxable supply. In the telecom case, unpaid instalments under a separate consumer-credit agreement did not automatically constitute unpaid consideration for the telephone sale. The Court rejected the lower court’s broader economic approach and remitted the case for further factual examination. [vatupdate.com]
• VAT groups using separate sales and financing entities should review contractual chains rather than relying on fiscal-unity treatment to merge commercial relationships. Bad-debt relief requires evidence that the unpaid amount represents consideration for the original VAT-taxed supply. Sale agreements, credit contracts, assignments, settlement flows, invoicing and customer communications must establish that connection. Where financing includes interest, fees, insurance or separate obligations, businesses should allocate unpaid amounts carefully and avoid treating the entire credit balance as unpaid taxable consideration. [vatupdate.com]
• The case returns to the Amsterdam Court of Appeal for fact-finding under Article 29(1) of the Dutch VAT Act, Article 90 of the VAT Directive and VAT fiscal-unity rules. Telecom, retail and consumer-finance groups should identify open refund claims using similar structures, preserve contracts and payment histories, and assess whether claims require revision. The judgment does not exclude relief automatically but makes contractual evidence decisive. Businesses should monitor the remitted proceedings for application of the Supreme Court’s test. [vatupdate.com]

---

---