btwheffing

Btwheffing, in Dutch fiscal terminology, refers to the levy of value-added tax (VAT) on goods and services. It is a consumption tax designed to tax the value added at each stage of production and distribution, with the end consumer bearing the final burden.

In practice, businesses charge VAT on sales to customers and may deduct the VAT they have paid on purchases (input VAT). The net VAT collected is remitted to the tax authorities, while businesses keep records and issue VAT-compliant invoices to justify the amounts charged and claimed.

Administration generally requires businesses with taxable turnover above a threshold to register for VAT, file periodic VAT returns (monthly, quarterly, or annually), and comply with invoicing and record-keeping rules. In the Netherlands, the tax authority responsible for VAT collection is the Belastingdienst. Invoices typically specify the applicable VAT rate and amount.

Rates and exemptions vary by jurisdiction. In the Netherlands, a standard VAT rate of 21% applies to most goods and services, a reduced rate of 9% applies to a defined list of goods and services (such as certain foods, medicines, and some facilities), and some transactions may be taxed at 0% or be exempt from VAT. Some activities are outside the VAT system and not subject to VAT at all.

Cross-border and international aspects involve additional rules, including how VAT is accounted for on imports and exports within the EU, and mechanisms such as reverse charge in certain business-to-business acquisitions. Btwheffing aims to ensure tax collection while allowing businesses to reclaim taxes paid on inputs.