Dutch VAT (BTW) has three rates: 21% on most goods and services, 9% on food, books, medicines and similar, and 0% on exports and some services. To add 21% multiply by 1.21. To remove it from a gross price divide by 1.21, so €1,210 including BTW is €1,000 plus €210 BTW.
How do you calculate BTW in the Netherlands?
BTW (belasting over de toegevoegde waarde) is the Dutch value added tax. If you know the net price, you add the percentage: net × 1.21 for the standard rate. If you only know the gross price, divide by 1.21, never subtract 21%. That is the commonest mistake. Taking 21% off €121 gives €95.59, but the right net price is €100 with €21 of BTW. The calculator handles both directions and shows the BTW share of the gross total, which is 17.36% for the 21% rate and 8.26% for the 9% rate.
Which BTW rate applies?
| Rate | Typical examples |
|---|---|
| 21% | Most goods and services, restaurant drinks with alcohol, electronics, clothing, car repairs, professional services |
| 9% | Food and non-alcoholic drinks, medicines, books and newspapers, hotel stays, public transport, cultural entry tickets, repairs of bikes and shoes |
| 0% | Exports outside the EU, supplies to EU businesses with a valid VAT number, some international transport |
Some activities are fully exempt from BTW and so differ from 0%: healthcare, education, insurance, banking and some property rentals. With exempt sales you can’t reclaim the BTW you paid on costs, which is where the two get different. The rate for a specific product can be surprising, so check the Belastingdienst list when in doubt.
BTW for freelancers and small businesses
If you invoice customers in the Netherlands you normally add BTW and file a return every quarter, then pay the difference between BTW charged and BTW paid on business costs. Small entrepreneurs with annual turnover under €20,000 can opt for the KOR (kleineondernemersregeling) and charge no BTW at all, though then you can’t reclaim it either. Include the BTW when you quote prices to consumers, and keep it separate when you work out income, as in the ZZP calculator, which expects turnover without BTW.
BTW and business purchases
When you lease a car or buy equipment for the business, the BTW can often be reclaimed, but private use of a car brings a correction. For a feel of the numbers on vehicles see the operational lease calculator and the financial lease calculator, which both work with prices excluding BTW.
How to use this calculator
- Type the amount you have.
- Select the BTW rate that applies to the product or service.
- Choose whether the amount already includes BTW or not.
- Read the net price, the BTW amount and the gross total.
Key figures at a glance
| Standard rate | 21% |
|---|---|
| Reduced rate | 9% |
| Zero rate | 0% |
| Add 21% | Multiply by 1.21 |
| Remove 21% | Divide by 1.21 |
| Small business scheme (KOR) | Turnover below €20,000 |
Frequently asked questions
Multiply the net price by 0.21 for the BTW amount, or by 1.21 for the gross price. To go backwards, divide the gross price by 1.21.
The reduced rate covers food, non-alcoholic drinks, medicines, books, hotel stays, public transport and several other goods and services listed by the Belastingdienst.
Yes. BTW is the Dutch name for VAT, and the rate for the standard category is 21%.
Yes. BTW you pay on business costs can be deducted from the BTW you charge, unless you use the small business scheme (KOR).
Yes. Imported goods are subject to Dutch BTW on arrival, with a low-value import scheme that collects it at the checkout from most sellers.