How VAT (BTW) Works in the Netherlands in 2026
The Netherlands charges VAT (BTW) at three rates: 21% standard for most goods and services; 9% reduced for food, medicines, books, passenger transport and several service categories; and 0% for exports and intra-EU business-to-business supplies. From 1 January 2026 hotel and pension accommodation moved from 9% to 21%, a material change for the hospitality sector. Businesses with annual turnover under €20,000 may use the KOR scheme and charge no BTW at all.
The Three BTW Rates in 2026
BTW (belasting over de toegevoegde waarde — value-added tax) is a consumption tax charged by businesses and remitted to the Belastingdienst. Three rates exist in 2026. The standard rate of 21% applies to all goods and services not specifically listed under the reduced or zero rate. The reduced rate of 9% applies to a defined list of socially and economically important goods and services. The zero rate of 0% applies to exports outside the EU, intra-EU B2B supplies to VAT-registered businesses in other member states, and international transport. VAT-exempt supplies — including most healthcare, education, insurance and financial services — sit outside the BTW system. An exempt supplier charges no BTW and cannot reclaim input BTW on its own purchases.
The 9% Reduced Rate: What Qualifies
The 9% reduced rate applies to: food and non-alcoholic beverages, drinking water, medicines and medical devices, books and e-books, newspapers and periodicals, passenger transport by train, bus or taxi, hairdressing, repair of bicycles, shoes and clothing, campsite accommodation, access to cultural venues (museums, theatres, concerts), sports facilities, and online news platforms. From 1 January 2026 hotel, pension and holiday-park accommodation (logies) no longer qualifies for the 9% rate and is now subject to the standard 21% rate. Campsite accommodation was specifically excluded from this change and remains at 9%.
Calculating BTW: Exclusive to Inclusive and Back
To add BTW to an exclusive price: BTW amount equals price times rate; inclusive price equals price times (1 plus rate). At 21% the inclusive price equals exclusive price times 1.21. At 9% it equals exclusive price times 1.09. To extract BTW from an inclusive price: BTW amount equals inclusive price times rate divided by (1 plus rate); exclusive price equals inclusive price divided by (1 plus rate). At 21%: BTW equals inclusive price times 21/121; exclusive price equals inclusive price divided by 1.21. At 9%: BTW equals inclusive price times 9/109; exclusive price equals inclusive price divided by 1.09. Round the BTW amount to the nearest cent per invoice line total, not per individual unit.
2026 Rule Change: Hotel Accommodation Now at 21%
The Dutch government raised the BTW rate on logies (hotel, pension and holiday-park accommodation) from 9% to 21% with effect from 1 January 2026. The change applies from the moment of payment: a booking paid in 2025 for a stay in 2026 already carries 21% BTW. Campsite accommodation is explicitly excluded from this change and remains at 9%. Add-on hotel services charged separately — breakfast, pool access, gym — remain subject to 9% BTW; only the accommodation component (logies) is 21%. Where a hotel charges a single all-in price, the lodging and ancillary components must be split by market value and taxed at their respective rates. For hospitality businesses this change significantly altered cost structures and pricing; verify with a tax adviser how it affects your specific supply.
The KOR Small-Business Scheme and VAT-Exempt Supplies
The kleineondernemersregeling (KOR, small-business scheme) allows businesses with annual Dutch turnover of up to €20,000 to opt out of the BTW system. A KOR-registered business charges no BTW to customers and cannot reclaim input BTW on purchases. Registration is voluntary; businesses opt in by notifying the Belastingdienst. If turnover exceeds the threshold during the year the KOR lapses, generally with retroactive effect from 1 January of that year. An EU-wide KOR variant has been available since 2025 for businesses operating across multiple EU member states. VAT-exempt supplies (vrijgestelde prestaties) differ from zero-rated: an exempt supplier never charges BTW and has no right to deduct input VAT. Common exempt categories include medical services, education, insurance, consumer finance, residential property rental, and certain cultural and social services. Consult the Belastingdienst or a qualified tax adviser if you are unsure whether your activities are exempt or reduced-rated.
FAQ
Which goods and services qualify for the 9% reduced BTW rate in the Netherlands?
The 9% rate applies to food and non-alcoholic drinks, drinking water, medicines and medical devices, books and e-books, passenger transport, hairdressing, bicycle and shoe repair, campsite accommodation, cultural and sports events, and online news platforms. Hotel and pension accommodation moved to 21% from 1 January 2026.
How do I calculate the BTW amount from a price that already includes VAT?
Divide the inclusive price by (1 plus the rate). At 21%: exclusive price equals inclusive price divided by 1.21; BTW equals inclusive price times 21 divided by 121. At 9%: exclusive price equals inclusive price divided by 1.09; BTW equals inclusive price times 9 divided by 109.
Does the hotel BTW increase also apply to campsites and holiday cottages?
Campsites are explicitly excluded from the 2026 rate change and remain at 9%. Holiday cottages and bungalow parks rented as accommodation generally fall under the logies category and the 21% rate should apply. The exact classification depends on the nature of the supply; consult the Belastingdienst or a tax adviser for your specific situation.
What is the KOR and who qualifies for it?
The kleineondernemersregeling (KOR) allows businesses with annual Dutch turnover up to €20,000 to opt out of charging BTW and reclaiming input BTW. Registration is voluntary and must be notified to the Belastingdienst. If the threshold is exceeded during the year the KOR typically lapses from 1 January of that year. An EU-wide KOR variant has been available since 2025.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.