Newsroom, VAT | 29. November 2022

EU Commission supports to raise the VAT threshold in NL

The EU Commission supports the Netherlands' request to raise the VAT registration threshold. by

NLD Higher threshold value possible
NLD Higher threshold value possible

The European Commission has proposed to allow the Netherlands to raise the threshold for VAT registration to €25,000. However, this only applies to businesses in the Netherlands. Foreign companies must register as soon as taxable supplies are made.

The EU Commission’s authorisation allows the Netherlands to derogate from the restrictions of Article 285 of the EU VAT Directive regarding the threshold of EUR 5,000. Such permission has already been in place since December 2018, and this latest measure raises the threshold for the Netherlands from EUR 20,000 to EUR 25,000.

As of January 2025, new rules on the equivalence of VAT registration thresholds will be introduced in the EU. This will allow a threshold of up to €85,000.

More on the subject: Umsatzsteuer