Register with the Dutch Commercial Register/Kamer van Koophandel
If you start your operations or legal entity in The Netherlands, then your business must register with the Dutch Commercial Register at the Netherlands Chamber of Commerce (KVK).
How to apply for a Dutch Tax ID
By registering a business at the Chamber of Commerce, your company will be automatically assigned a Corporate Income Tax ID. This is also the case when your business is not effectively being managed from the Netherlands or if you didn’t assign a Dutch board member (or shareholder). The Dutch corporate income tax ID will be shared with you via post, as well as the login details to access the online portal of the tax authorities. The online portal allows you to check for any pending tax filing requirements, and submit tax returns when necessary.
How to apply for a Dutch VAT number
A Dutch VAT number is typically issued automatically to Dutch businesses by the Dutch tax authorities, soon after the registration at the Chamber of Commerce. This does not apply to Dutch businesses that are managed by non-resident directors. In such a case, the Dutch tax authorities might request more information about the type of business activities that are performed in The Netherlands, and other matters that can determine your business’ economic ties with the Netherlands (such as a physical office, warehouse, staff, customers, etc.)
In case your business will not perform local business activities but will work with Dutch customers, it can apply for a ‘non-resident’ VAT number. Such applications are considered by Belastingdienst Buitenland (The non-resident department of the tax authorities), and typically issued within 2 weeks. The VAT number for non-residents is practically the same as VAT ID. However, one of the limitations of the non-resident VAT ID is that it will not allow you to apply for an art. 23 exemption, waiving the import duties or VAT on import of goods into The Netherlands.
How to apply for a Wage Tax ID and Register as an employer for payroll taxes
In order to employ staff in your Dutch business, it’s important to consider the payrolling formalities. One of the requirements is to submit a wage tax return each month, in which the salary is declared. Based on the salary, the employer is responsible to withhold the wage taxes and social contributions. In order to comply with the wage tax filing requirements for your company, it’s required to apply for a wage tax ID. The Dutch wage tax ID can be applied by submitting the application form to the tax authorities. The procedure usually takes about 2 weeks, but while you are awaiting the wage tax ID, the employee can already start working for your business. Once the wage tax ID is activated, and/or the first month has expired, the first wage tax return can be submitted.
This guide is part of Company Formation in our Launch Guide.
