Dutch Value Added Tax (BTW) is a tax levied by the government on the purchase of products or services.

VAT is a type of turnover tax that is applied in 136 countries, including most European countries. By order of the European legislator, the Netherlands have known VAT since 1 January 1969. Manufacturers and suppliers increase the price of a product or service with the VAT amount, which they in turn must pay to the government. To that end, the company must usually file a return every quarter and pay the amount.

The revenue of VAT is collected by the federal public services for finances and is then distributed across the EU, the federal state, the communities and social security. This is done according to a predetermined formula, so-called allotment.


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