Nultarief

Nultarief is a term used in Dutch tax policy to indicate a zero rate for value-added tax (VAT). It refers to applying a 0 percent VAT charge to eligible supplies, rather than omitting tax entirely. The concept is part of the VAT system and is distinct from a full exemption.

How it works in practice: when a transaction qualifies for the nultarief, the seller issues an invoice showing 0% VAT. The sale is recorded for VAT purposes, but no VAT is due. Importantly, businesses can usually reclaim the input VAT paid on purchases tied to those outputs, subject to general VAT rules and restrictions. This is different from an exemption, where no VAT is charged and input VAT on related purchases may not be recoverable.

Common applications: zero-rated supplies are typically linked to exports of goods and certain cross-border transactions within the European Union, such as intra-EU supplies between VAT-registered traders when conditions are met. In the Netherlands, the 0% rate is part of a multi-rate structure that also includes reduced and standard rates; the specific eligibility criteria for the nultarief are defined by national law and EU VAT directives.

Purpose and impact: the zero rate helps prevent VAT on exported goods and certain cross-border transactions from becoming a tax burden, supporting trade and competitiveness. It also requires careful documentation to demonstrate eligibility and to distinguish zero-rated supplies from exemptions.

Notes: the term can appear in other contexts outside the Netherlands, where policymakers assign a zero rate to particular goods or services under local VAT rules.