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The main types of taxes in the Netherlands

11.04.2019

Edited 12.05.2021/XNUMX/XNUMX

The topic of taxes is not easy even at home, and what can we say about immigration and life in another country, where all legislation, including tax, is given in the state language adopted in it. Sometimes there are two or three such languages, but this, as a rule, does not change the situation - even then it is not so easy to find relevant information, but to understand and deal with the nuances inherent in taxation - this is absolutely a “book with seven seals”. Don't worry - we'll read it together!

That is why in this article we have collected for you basic information about taxes in the Netherlands with explanations and examples. Go!

A little about approaches to tax classification

You can approach the classification of taxes in different ways. For example, they can be divided into those who pay them: individuals (individuals), individual entrepreneurs (EMZ/ZZP's) or legal entities (BV, NV etc.)... Or group them based on who calculates these taxes: the tax office (state taxes) or your municipality (local taxes).

In this article, we will adhere to the second principle of categorization, not forgetting to mention for whom these taxes are relevant.

In addition, we will not be specific in this article - this is a tax (tax) or collection (Heffing.) or expenses (weigh), and we will call all these categories taxes.

According to another classification, taxes are divided into permanent taxes that must be paid at regular intervals, for example, payroll taxes or value added tax, and taxes that you pay one-time, for example, tax on the purchase of a car or real estate.

Some taxes are tied to the subject (a specific person), for example, income tax (all working residents of the Netherlands must pay it), but there are taxes that are paid under a certain condition. Thus, a tax on a car is paid only if you have a car, a tax on a dog is paid if you have a dog and if your municipality collects this tax.

What are the taxes in the Netherlands?

In the Netherlands, as in many other countries, the primary mention of taxes and taxation is given in article 104 of the Constitution - the Basic Law (De Constitution, Article. 104: Taxes).

And as we have already mentioned, taxes can be collected directly by the Dutch tax office (Belastingdienst) or municipalities (GemeENTEN)... At the same time, for the first type of taxes, the state has established literally everything: specific rates and rules for their payment. This is defined both by the Basic Law and by separate Laws concerning each national tax, the text of which can be found here to register:.

Local taxes may differ from one municipality to another. This is because the Law only stipulates the existence of the tax itself, but not its specific rates or tariffs.

Tax levied by the Dutch tax authority (rijksbelastingen)

To the general government taxes that are administered tax authorities, include, first of all:

  • income tax (inkomstenbelasting),
  • income tax (vennotschapsbelasting),
  • value added tax - VAT (omzetbelasting/belasting toegevoegde waarde – btw),
  • payroll taxes (loonbelasting./ loonheffingen),
  • dividend tax (dividendbelasting),
  • excises (Accijns),
  • road tax / transport tax (motorrijtuigenbelasting – mrb),
  • and a few more small taxes.

The rates of these taxes are set the same for everyone and, if this tax is applicable to you, the calculation and payment of it is mandatory. So, if you have income, then you pay income tax, if there are sales, then you pay VAT, and so on.

Adopts national tax laws Dutch Ministry of Finance (Ministerie van Financien)... These taxes are collected, as already mentioned, by the tax service. (Belastingdienst), which also makes sure that taxpayers are aware of their tax obligations. For example, she sends out the famous "blue envelopes" reminding you to file your annual tax return.

National taxes are composed of direct and indirect taxes. Direct taxes include taxes that you pay yourself, such as income tax, dividend tax, or inheritance tax. Indirect taxes are usually included in the cost of goods or services, thereby increasing their cost. These taxes include, for example, VAT or excise taxes.

You can read more about each of the national taxes by going to here to register:.

Taxes levied by the municipality (gemeentelijke belastingen)

These are local taxes, which include (please note that in each municipality some of the taxes listed below may be absent, and some may be added - to clarify the data, we advise you to contact your website directly municipality):

  • property tax (onroerendezaakbelasting – OZB),
  • taxes on the development of the territory:
    - for garbage removal (afvalstoffenheffing)
    – to the sewer (Rioolheffing)
    – for mowing lawns on public territory of the municipality, etc.
  • dog tax (hondenbelasting)
  • tourist tax (toeristenbelasting),
  • advertising tax (reclaimed to be lasting),
  • tax on keeping all channels clean and tidy (waterschapbelasting /waterschaplasten) etc.

Local taxes are collected annually by the municipality where you live. They go to the budget of the municipality, and he distributes them himself.

The reason these taxes exist is simple - we all use common / communal facilities such as street, sewer, garbage collection or street lighting. And, of course, you have to pay for all these objects, and residents contribute a part to their maintenance (as a rule - 1/3), while the rest of the amount is paid by the government of the Netherlands.

Somewhere the taxes are higher, but perhaps that's why it is cleaner there.

For example, the dog tax... With this money, trash cans (sometimes also boxes with bags) are installed, where you can throw away what you removed after your dog. They clean such urns with the same money. Well, if your municipality does not levy a tax, then in this case all cleaning takes place on the money of the municipality. More detailed general information about this tax can be found here (by the way, this is practically the only local tax that is mentioned on the website of the tax service)

This can also include such an important and specific tax for the Netherlands as waterschapbelasting, the amount of which varies from municipality to municipality. It was introduced quite a long time ago due to the fact that floods occurred regularly in the country. At the same time, it was decided that everyone should take care of general safety. And, indeed, after 1953, when there was the last serious flood, this did not happen again, although the Netherlands continues to be below sea level. So taxpayer money is clearly being spent for the benefit of society. This tax is paid by both the owner of the home and every person actually living at this address (that is, registered there).

Other local taxes you'll likely encounter are trash and sewer taxes. They are awarded by the municipality and are calculated depending on the number of people registered in the house.

When and how to pay different types of taxes?

Let's first focus on basic national taxes.

Income tax paid once a year after filing a tax return only by individuals and individual entrepreneurs (their annual return consists of two parts - business and personal). The declaration must be submitted by April 30 of the year following the reporting year (for example, for 2021 it will be necessary to report by April 30.04.2022, 3). After that, the tax service processes the information received and, as a rule, within the next XNUMX months you will receive two decisions - preliminary (voorlopige aanslag) and the final (definitieve aanslag). After the final decision has been made, you have 6 weeks to pay the tax - the deadline for its payment is always indicated in the decision of the tax office. Also, income tax can be paid in advance (in installments or one-time during the current year) if you expect that the amount of tax to be paid at the end of the year will be large enough. This is done through the submission of an expense report - you can do it yourself by going through here to register:, or you can ask us to help you with this by leaving a request on the website or by calling.

If you find it difficult to immediately pay the entire amount of tax resulting from the results of the annual tax return, it is possible to request a tax deferral for this payment. For 4 months it is given almost always. If you want to get a deferral for a longer period, then you will need to prove to the tax service the real difficulties in paying your tax for 4 months. Should you need to request such a delay, Nalog.nl will be happy to assist you with this.

Income Taxes only legal entities like BV or NV pay. It is paid once a year, and just like income tax, it can be paid in advance. The deadlines for filing a tax return and payment of tax are approximately the same as for income tax, only in the case of income tax, the return must be submitted by June 1 of the year following the reporting year. A deferred payment is also possible.

VAT only business (individual entrepreneurs and legal entities) charges and pays. The standard reporting period is a quarter. But, based on various criteria and specific cases, the tax office can set a monthly or annual reporting period for this tax, or you can request VAT exemption based on the implementation of certain types of activities or using the rule KOR (kleineondernemersregeling) The result is paid according to the VAT report within a month after the end of the reporting period (for example, the tax for the 3rd quarter (July-September) must be paid before October 31).

Payroll taxes (this also includes all social insurance) are monthly withheld by the employer from the wages of their employees. But you need to understand that during the calendar year, these amounts are withheld and paid in advance, while the final calculation of these taxes occurs when filling out the annual tax return of an individual.

Road tax - this is a tax for those who have (i.e. registered for) a motor vehicle (car or truck, bus, motorcycle, etc.). It is charged once a quarter based on: the type of fuel used, the weight and type of vehicle and the province in which the owner is registered. You can also pay it once a quarter or monthly, after notifying the tax office of this. This tax can be calculated by passing here to register:. You can read more about transport tax and its types. here.

Rђ RІRѕS, local taxes are charged and received at the beginning of the year, somewhere in February, after the municipality recounts the number of registered people and approves the cost (WOZ-Waarde) houses / apartments at the end of the reporting year. This cost is determined annually based on the requirements Real Estate Appraisal Law (Wet appreciation Onroerende. Affairs - WOZ) . See WOZ-value every residential building in the Netherlands you can here 

Index WOZ-value very important for many types of taxes. For example, based on it is calculated property tax... But you pay this tax only if you are the owner of the home (bought or took it out on a mortgage), and not its tenant.

Local taxes can be paid by dividing the assessed amount into two parts and paying the first part in March and the second at the end of April. You can also request monthly payments, which may be automatically debited from your bank account. And this can be very convenient, since you do not pay a large amount at once, but pay small installments once a month. This payment method will automatically renew into the following year and beyond unless you make a separate request to stop such automatic charges.

And perhaps someone will desperately need the following information - you don’t have to pay most municipal taxes if you’re really strapped for cash. It's called a waiver (kwijtschelding) which can be obtained by contacting your municipality directly. You can read more about this by going through here to register:.

Let's dwell on payment in more detail dog tax. You can look up its amount on the website of your municipality, and find out there how many dogs one owner has it applies to. Yes, you are required to pay this tax, but the municipality, of course, does not walk through yards and count dogs, and it, as a rule, requests information from veterinarians. And - a little life hack from Nalog.nl - if you got a dog at the end of the year and did not have time to register it with the veterinarian, then you don’t have to pay tax for this year, but start paying it only from the next one.

And, in conclusion of the review on local taxes, we can say that until the municipality sends you a letter stating that you have to pay something, then you don’t have to pay - there are no fines for this. The municipality can only assess additional taxes for the previous year. This may be important for those who have recently arrived/moved and were not aware of any type of local taxes that exist in a given municipality.

A little about other types of taxes

Import taxes / import taxes (Belasting Bij Invoer) consist of import duties (Invoerrechten.), VAT and excise taxes. Import duties are collected by customs, and the list of goods subject to duties is quite large. It is important to be careful when you buy something from outside the Netherlands - it may happen that you buy an inexpensive item on Aliexpress or Amazon, but then have to pay more for importation.

Read more about this. here , here и here

Please note that all the above links on taxes on the import of goods are given according to the information posted there at the current time. Thus, currently, parcels worth up to 22 euros in the Netherlands are exempt from import VAT. However, this exemption will expire on July 1, 2021, and from that moment on, all imports of goods, regardless of their value, will be subject to EU import VAT.

In addition to the taxes already mentioned in this article, there are, for example, some small taxes that are already included in the cost of services, for example, taxes on aircraft, insurance, etc. In other words, they have already been included in the selling price of the companies that sell these services to us, and therefore we do not even think about them. For example, gasoline in the Netherlands is more expensive than in Germany, because the excise tax is higher here, etc.

Summing up the review, we want to remind you that absolutely all taxes in the Netherlands were not considered here, and this material is not educational, but informative for a wide range of readers. However, we plan in the future to dwell on a particular tax or group of taxes in more detail, especially if it is associated with changes in the methods of their calculation, timing of payment or any other innovations.

In conclusion

To determine which tax came to you, first look at who sent you this letter - tax or municipality. If the letter came from the tax office, then the type / name of the tax in question is always written in the upper right. If this is, for example, motor vehicle tax, then it has to do with the car, and then be sure to look at the license plate (Kenteken) car specified in the received letter - is it even your car, etc.

In addition to taxes, sometimes fines come, and in this case it is also important to look at who sent them.

Therefore, before you panic:

  1. Check that this letter is really you.
  2. See what sort / type of taxes or fines it is.
  3. And only then you can panic, but nevertheless, the best way out of the situation is to find a competent consultant and entrust the matter to him.

If you think that a tax or fine has been assessed to you unfairly, or you simply cannot understand what it is, contact us. Nalog.nl is your accountant in the Netherlands, and we will help you deal with taxes and fines and, if necessary, challenge them.

And in order for us to be able to help you, be sure to photograph the entire letter from all sides - and in this case we will be able to tell you what you received and what to do with it.

We are always with you - call, write, come!

 

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