Avoid an additional VAT assessment

Products and services are subject to value-added tax (VAT, BTW in Dutch). You charge VAT to your customers and pay it to the Belastingdienst (Tax Administration). Most business owners must file a VAT return every 3 months. 

When do you get an additional assessment?

You will receive a naheffingstoeslag if you fail to file your BTW return or file it too late. If you filed your return on time but paid no VAT or too little VAT (in Dutch), you will also get an additional assessment. You can avoid receiving an additional assessment by filing your VAT return on time, even if you have not had any turnover. And by paying your VAT bill on time.

Additional assessment and a fine

If you receive an additional assesment, you will also have to pay a fine. The fine for failure to file or missing the filing deadline is €68. The fine for non-payment, underpayment, or late payment (payment default) is anywhere from a minimum of €50 to a maximum of €5,514.

Must I file a VAT return?

Sometimes, business owners mistakenly believe they do not have to file a sales tax return. But beware, because you must also file a tax return if you:

• Did not charge VAT. You always have to file a return, even if you do not have to pay any VAT. This is also known as a nil return.
• Ended your business. It may take a while for the Belastingdienst to strike you off their list of entrepreneurs. If you get a notice to file a return after you ended your business, you must file the return. If you no longer have to pay VAT , file a nil return.
• Do not yet have any turnover. As soon as you start your business, you have to file tax returns and pay taxes. Usually, that will also mean filing quarterly tax returns. The Belastingdienst will inform you when you need to file your first VAT tax return. 
• Paid and charged VAT, but never received a letter from the Belastingdienst saying you have to file a VAT return. Call the Tax information line.
• You want to make use of the Small Business Scheme (KOR). Because you cannot opt into the Small Business Scheme without a VAT number, the start of the scheme will not coincide with the start of your business. Until you receive confirmation that you have been enrolled in the scheme, you have to file VAT tax returns.

Some goods and services are exempt from VAT (in Dutch). Even if your goods and services are exempt, check if the Belastingdienst expects a tax return from you. If they do, you must file it.

Important: you have to transfer the VAT you owe the tax authorities to the bank account of the Belastingdienst yourself. You will not get an assessment or an invoice.

Deadlines for filing a VAT return

Most entrepreneurs have to file quarterly returns. The deadlines for quarterly returns are:

• 30 April for the first quarter
• 31 July for the second quarter
• 31 October for the third quarter
• 31 January for the fourth quarter

Important: if your company has any legal form other than eenmanszaak (sole proprietorship), you will need eHerkenning to file tax returns. Apply for eHerkenning before you return is due, because you cannot file a return without it.

Oops, I missed the deadline

What if the deadline passes and you still have not filed a return? You have up to 7 calendar days after the deadline to file your return. If you file your return within those 7 days, you will not be fined.

What if you do get an additional assessment?

Have you received an additional assessment? It is good to know that the Belastingdienst's estimate is often much higher than what you actually owe. 

If you file a VAT return after the additional assessment, you usually will not have to pay the full amount. The Belastingdienst can adjust the estimate. However, you will still have to pay the fine for failing to file a return.

 Find out what you can do after you receive an additional assessment. The exact details depend on your situation.  

Can you object to an additional sales tax assessment?

If you believe you were wrongly sent an additional VAT assessment, use the Naheffingscheck (in Dutch). In certain cases, for example if you were hospitalised, you can object. To object, submit the form ‘Bezwaar Omzetbelasting’ (VAT objection) in Mijn Belastingdienst Zakelijk.