The importance of SBI codes for your company
- Jelle van der Walle
- The basis
- 23 October 2023
- Edited 27 November 2024
- 2 min
- Starting
- Rules and laws
When you register with KVK, you describe what you will be doing with your business. This is your business activity. Your business activity determines which SBI code you get. This may seem like a simple administrative thing, but a lot can depend on your SBI code. For instance, with an incorrect SBI code, you could miss out on a subsidy or permit.
SBI is the abbreviation for Standaard Bedrijfsindeling (Standard Industrial Classification). Every company has one or more SBI codes. These codes show what a company does. When registering your company in the Business Register, KVK checks what your business activities are and which SBI code is most suitable.
Why your company's SBI code is important
Many things are affected by SBI codes. Here are some common ones.
Insurance
Insurance companies decide how high your premium is based on your SBI code, among other things. But also, whether they will pay out in case of a claim. Because if you cause damage during activities that are not included in the description of your business activities, you are not insured for this.
Money matters
Banks base their decision to give you a loan or bank account partly on your SBI code. This also applies to subsidies. You can only get these if you have the SBI code for the sector for which the subsidy is intended.
The SBI code also plays a role in government support. If there are support measures for companies in a certain sector, the government will look at the SBI code of your company. After you register, you can change your company's SBI code(s) yourself. If you decide to do so, make sure your SBI code always matches your business activities.
Taxes
The Netherlands Tax Administration uses the SBI code to decide whether your company must charge customers VAT. An incorrect SBI code could mean you are wrongly exempt from paying VAT. If the Tax Administration discover this, you can expect an extra tax assessment. The Tax Administration will then demand compensation for the missed VAT revenue. Or maybe you are charging VAT to your customers, when you should not be.
Licences and permits
In many industries, businesses need a licence to operate. Examples are taxi companies, pharmacies, catering establishments, and off-licences. The government looks at your SBI code to decide whether you need a licence.
Also, sometimes you need a certain SBI code to get a certain permit. For example, a parking permit from the municipality that is only available to social workers.
Location of your business
SBI codes are also important for the location of your business. Whether you start your business from home or elsewhere, check the environment (in Dutch). This plan says which environmental rules apply in a certain location, the environmental category. Each category has a number of SBI codes, so you can see whether your business is allowed in the place of your choice. Do you want to start a coffee shop selling cannabis, for example? This is often not allowed in a residential area.
Pension
Some professional groups have a mandatory pension . For example, general practitioners, physiotherapists, plasterers, and painters. If, according to your SBI code, you belong to such a professional group, you and your staff must build up a pension with the sector pension fund. So, check whether you are covered by a mandatory pension scheme when starting your business. If you do not, the pension fund can later claim the unpaid premium retroactively.
Staff
Do you have staff and is there a collective labour agreement ) for your sector? If so, the CAO applies to all companies in the sector, and you must follow the agreements it contains.
Accidents
The SBI code is also important for recording accidents. For example, it reveals in which sectors certain accidents are more or less common. You can then take better measures yourself and organisations can adjust policies accordingly.
Changes to SBI codes in 2025
The SBI codes are updated about once every 15 years. The next major change will be in 2025. KVK aims to implement the adjustments in the Business Register in the first half of September 2025. The SBI codes will be updated automatically, you do not need to do anything yourself. However, it is important that your business activities as listed in the Business Register are correct. So, it makes sense to check this.
Statistics Netherlands (CBS) uses the SBI codes to classify businesses according to their main activity and to describe the economy in statistics. The CBS website has more information on the upcoming SBI revision.
