How Netherlands BTW works
In the Netherlands, value-added tax is called BTW (belasting over de toegevoegde waarde). The standard rate is 21%. A reduced rate of 9% applies to food, books, medicines, and certain other goods.
To add 21% BTW: multiply net by 1.21. Example: €100 → €21 BTW → €121 incl. To reverse: divide by 1.21.
Dutch invoices must show the BTW amount and rate. Freelancers (zzp'ers) and companies use these calculations constantly when preparing facturen (invoices).
Reverse charge & inclusive prices
Verlegging van BTW (reverse charge) can apply in construction and EU B2B scenarios. Check Belastingdienst guidance for your supply type.
Invoice requirements
A Dutch BTW invoice should include: names and addresses, VAT identification number when required, invoice number and date, description, amounts excl./incl. BTW, and the BTW rate.