inkoopBTW

InkoopBTW, often referred to as input VAT or voorbelasting in Dutch, is the value added tax a business pays on purchases of goods and services that are used for its taxable activities. It is the VAT that can be deducted from the VAT charged on the business’s own sales.

In the Dutch VAT system, businesses charge VAT on their sales (output VAT) and pay VAT on their purchases (input VAT). The net VAT due to the tax authority equals output VAT minus input VAT. If input VAT exceeds output VAT, the surplus can be refunded by the tax authority or carried forward to future filing periods. Deduction is conditional on the purchases being for taxable activities and supported by valid invoices.

To reclaim input VAT, several requirements apply: the purchases must be for business use, invoices must meet legal requirements, and non-deductible items or mixed-use costs may require apportionment or partial deduction. Personal purchases and purchases related to exempt activities often reduce or block the deduction. Special rules exist for mixed-use assets and for certain large-scale or high-value items.

VAT returns (BTW-aangifte) are filed periodically, typically monthly or quarterly, with a reconciliation of total input VAT and total output VAT. The resulting saldo determines whether the business pays VAT to the tax authority or receives a refund. In cross-border transactions within the EU, specific rules like import VAT, intra-community acquisitions, or reverse charge may apply to input VAT inkoop.