Stricter rules for Dutch VAT adjustments

Crowe Peak/ Knowledge Hub/ News/

Eight-week correction period effective 1 January 2025

As of January 1, 2025, the deadline for submitting Dutch VAT adjustments (suppleties) has been shortened to eight weeks. This clear and strict deadline replaces the previous requirement to submit corrections “as soon as possible.” The new rules not only bring more clarity but also impose stricter compliance requirements on businesses that need to make VAT corrections in the Netherlands. Questions about your Dutch VAT filings and corrections? Consult one of our tax specialists for guidance.

Important considerations regarding the new term

Considerations
Eight-week deadline	Under Dutch law, businesses have eight weeks to submit a VAT adjustment after identifying an error in a VAT return. This applies to errors and omissions in returns from the past five calendar years.
Transitional arrangement until 26 February	For errors identified before January 1, 2025, the adjustment must be submitted by February 26, 2025, at the latest.
Penalties	If the adjustment is submitted late, the Dutch Tax Authorities (Belastingdienst) may impose a fine of up to 100% of the additional tax due, provided there is evidence of intent or gross negligence. Adjustments of €1,000 or less are exempt from penalties.
Tax interest	Tax interest is charged on additional VAT due. However, adjustments for 2024 can avoid interest if submitted before April 1, 2025. If the error was discovered before January 1, 2025, the eight-week deadline still applies.

This is why the term has changed

The Dutch government introduced these changes to create a clear and enforceable deadline for correcting VAT filings. Under the previous rules, the phrase “as soon as possible” left room for interpretation, leading to disputes about timing. This often allowed businesses to argue their case and made enforcement difficult for the Dutch Tax Authorities.

A key driver for these changes was a 2023 ruling by the Zeeland-West-Brabant District Court. The court found that businesses could avoid penalties by exploiting the vague timing requirements under the old rules. The eight-week rule was introduced to ensure timely corrections and prevent the loss of tax revenue. Additionally, this rule aligns with the correction period for wage tax, promoting consistency across Dutch tax regulations.

What does this mean for your business?

The stricter rules require a proactive approach to VAT compliance. Businesses should regularly review their VAT filings for errors and take prompt action to correct them. Key action points include:

Review your Dutch VAT returns regularly.
Act within eight weeks: Submit a VAT adjustment promptly after identifying an error.
Plan: For the 2024 tax year, submit adjustments before April 1, 2025, to avoid tax interest.

The Dutch VAT system imposes strict documentation and reporting requirements on businesses. Regular compliance checks can help avoid issues and ensure adherence to these rules. The tightened rules for VAT adjustments highlight the importance of taking tax compliance seriously. By monitoring your VAT filings and addressing errors quickly, you can avoid penalties and ensure your business remains fully compliant with Dutch tax law. If you are unsure about how to apply these new rules or need expert assistance, feel free to contact one of our specialized Dutch tax advisors.