This article was published in 2020. Laws, case law and regulatory guidance may have changed since then. Contact us for up to date advice.
Since 1 January 2020, the new VAT identification number has applied to all sole traders in the Netherlands. The new VAT identification number is also referred to as the VAT ID (btw-id). The VAT ID replaces your VAT tax number, which incorporated your citizen service number (BSN). In this article we tell you everything about the VAT identification number for sole traders.
Sole traders
Do you run a sole trader business? Then from 1 January 2020 you must use this new VAT ID in all your dealings with customers or suppliers. You must state the VAT ID on your invoices and website. Is your old VAT number still on letters or other communication materials? Then replace it with your new VAT identification number from 1 January 2020.
The VAT ID and your privacy
The new VAT ID was introduced with a view to protecting the privacy of sole trader owners. Your BSN is no longer incorporated in the new VAT ID. In this way, the legislator aims to better protect your privacy.
Example of a VAT ID
The new VAT identification number looks like this: country code NL, 9 digits, the letter ’B’ and a 2-digit check number. The 9 digits no longer have anything to do with your citizen service number. The check number consists of 2 random digits.
This is an example of the new VAT identification number: NL000099998B57.
Your VAT number becomes your turnover tax number
Please note: from 1 January, the Dutch Tax and Customs Administration (Belastingdienst) will refer to your VAT number as the turnover tax number (omzetbelastingnummer). You will therefore continue to use this number in your contact with the Belastingdienst.
This means that you will continue to use two numbers, namely the VAT ID and the VAT number. You communicate the VAT ID to your external relations, such as customers and suppliers, while the VAT number is intended for communication with the Belastingdienst.
Lost your new VAT ID or VAT number?
You are advised to keep your new VAT ID in a safe place. Have you lost your new VAT ID anyway? Then you can request a copy of the letter containing the new number. You can do this via the BelastingTelefoon, on 0800 0543.
Lost your VAT number (also known as the turnover tax number)? You can find this number in the business portal (ondernemersportaal), for example when you file your VAT return.