Bookkeeping in the Netherlands: Frequently Asked Questions

Last updated: September 2026

Holding & Investment Companies

How does bookkeeping for a Dutch holding company differ from that for an operating company?

A holding company usually has few transactions but more complex ones: dividends received, shareholdings in foreign entities, intercompany loans in various currencies, management fees, and group financing. The focus is on valuing participations correctly, documenting intercompany agreements, transfer pricing challenges, and ensuring the participation exemption and interest deduction rules are applied properly.

What is the Dutch participation exemption?

The participation exemption (deelnemingsvrijstelling) exempts dividends and capital gains from qualifying shareholdings from Dutch corporate income tax. A holding generally qualifies if it owns at least 5% of the subsidiary’s nominal paid-up share capital, and the subsidiary is not a low-taxed passive investment. Your records should clearly show ownership percentages, acquisition dates, and the nature of each subsidiary.

What bookkeeping requirements apply to intercompany loans?

Intercompany loans must be on arm’s-length terms: a written agreement, a market-based interest rate, a repayment schedule, and actual interest booked and paid. Interest income and expense must be recorded in both entities.

Can a holding company reclaim Dutch VAT?

A pure holding that only owns shares is generally not a VAT entrepreneur and cannot reclaim input VAT. A holding that actively provides services to its subsidiaries, such as charged management services, may be able to recover VAT on related costs. In addition, intra-group financing to non-EU subsidiaries may also result in a VAT-recoverable position. Proper invoicing and documentation of those services is key.

Does a holding company have to file annual accounts?

Yes. Every Dutch BV, including a holding with no employees or operations, must prepare and file annual accounts with the Dutch Chamber of Commerce (KvK), file a corporate income tax return, and keep its UBO registration up to date.

Annual Accounts and Filing Deadlines

When must Dutch annual accounts be filed with the Chamber of Commerce?

Management must prepare the annual accounts within five months after the financial year ends, and shareholders can extend this by up to five months. The accounts must be adopted and then filed with the KvK within eight days of adoption, and in any case no later than twelve months after year-end. For a calendar-year BV, the final filing deadline is 31 December of the following year.

What are the main Dutch tax filing deadlines?

VAT returns are usually filed quarterly and due by the end of the month following the quarter. Payroll tax returns are filed monthly and due by the end of the following month. The Corporate Income Tax Return is due five months after year-end (1 June for calendar-year companies), though extensions are commonly available.

What do Dutch company size categories mean for filing?

Companies are classified as micro, small, medium or large, which determines how much detail must be published. Under the current thresholds (in effect since financial year 2024, and still applicable for 2026), a micro company stays under two of these three limits: €450,000 in assets, €900,000 in net turnover, and 10 employees. A small company stays under two of these three limits: €7,500,000 in assets, €15,000,000 in net turnover, and 50 employees. Micro and small companies may file simplified accounts, while medium and large companies generally need an audit.

How long must financial records be kept in the Netherlands?

The standard retention period is seven years. Records relating to real estate must be kept for ten years.

Fiscal Unity for Dutch Group Structures

What is a fiscal unity in the Netherlands?

A fiscal unity (fiscale eenheid) for corporate income tax lets a Dutch parent and its subsidiaries be taxed as one entity. The group files one consolidated Corporate Income Tax Return, and the system automatically offsets group profits and losses.

What are the requirements for a CIT fiscal unity?

The parent must hold at least 95% of the subsidiary’s legal and economic ownership. The companies must generally be Dutch tax residents (or a Dutch permanent establishment of a foreign company), have the same financial year, and apply the same tax rules. The Dutch Tax Administration forms the fiscal unity upon request.

When does a fiscal unity make sense?

It is useful when one group company makes losses that can offset another’s profits, when there are frequent intercompany transactions or asset transfers, or when you want to reduce the number of separate tax returns. It is less attractive if you plan to sell a subsidiary soon, because leaving a fiscal unity can trigger anti-abuse rules.

What are the bookkeeping implications of a fiscal unity?

Each group company still keeps its own full administration and, in most cases, its own annual accounts. Intercompany transactions are eliminated for tax purposes in the consolidated return, so they must be clearly identifiable in the books. All companies in the fiscal unity are jointly and severally liable for the group’s CIT.

Is a VAT fiscal unity the same as a CIT fiscal unity?

No. A VAT fiscal unity is a separate regime based on financial, organisational and economic ties between entities. It removes VAT on supplies within the group and results in one VAT return. A group can have one without the other.

Common VAT Mistakes by International Companies

What are the most common VAT mistakes international companies make in the Netherlands?

The most frequent errors are applying the reverse charge incorrectly, missing EU distance-selling thresholds, misapplying triangulation rules, not filing the EU sales listing (ICP return), and charging Dutch VAT where it should not apply, or the reverse.

How does the reverse charge work in the Netherlands?

For most B2B services and certain goods supplied by a foreign business to a Dutch VAT-registered customer, the customer accounts for the Dutch VAT instead of the supplier. The invoice must state “VAT reverse-charged” and include both parties’ VAT numbers. A common mistake is charging foreign VAT, or Dutch VAT, where reverse charge should apply.

What is the OSS threshold for distance selling?

When combined B2C distance sales of goods and certain digital services to consumers in other EU countries exceed €10,000 per year across the EU, VAT must be charged at the rate of the customer’s country. The One-Stop Shop (OSS) lets you report that VAT through a single quarterly return in your home country instead of registering in each EU country.

What is triangulation and where does it go wrong?

Triangulation (ABC transactions) involves three businesses in three EU countries where goods move directly from the first supplier to the final customer. A simplification lets the middle party avoid VAT registration in the destination country, but only if the invoice carries the correct wording, the middle party uses a VAT number from a different member state, and the transaction is correctly reported in the ICP return. Missing any of these steps removes the simplification.

Is there a way to avoid pre-paying import VAT in the Netherlands?

Yes. With an Article 23 license, import VAT is not paid at the border but reported and deducted in the same VAT return, avoiding a cash-flow cost. Many foreign companies importing into the EU through the Netherlands overlook this.

DAC6 and CRS Reporting

What is DAC6?

DAC6 is an EU directive requiring intermediaries, and in some cases taxpayers themselves, to report cross-border tax arrangements that show certain risk indicators (“hallmarks”) to the tax authorities. In the Netherlands, reports go to the Dutch Tax Administration, generally within 30 days.

What is CRS and does it affect normal companies?

The Common Reporting Standard (CRS) requires financial institutions to report account information on non-resident account holders. Ordinary companies are affected because banks ask them to self-certify their tax residence and classification. A holding with mainly passive income is often classified as a passive entity, meaning the bank must also identify and report its controlling persons.

What do DAC6 and CRS mean for a company’s financial administration?

Your administration should hold up-to-date information on shareholders, UBOs, tax residencies, and group structure, and document why a cross-border arrangement is or isn’t reportable. Aligning bookkeeping with your KYC/AML files makes bank reviews, audits, and tax inquiries far easier.

Are there newer EU reporting rules to know about?

Yes. DAC7 covers digital platform operators, and DAC8 extends reporting to crypto-asset service providers, applying from 2026. Companies using platforms or holding crypto-assets should check whether these affect their records.

Setting Up Dutch Bookkeeping for a New BV

What should a foreign company do in the first 90 days after incorporating a Dutch BV?

After notarial incorporation and KvK registration, key steps include: receiving your VAT and payroll tax numbers from the Tax Administration, opening a Dutch or EU business bank account (bank KYC can take several weeks), choosing accounting software, setting up a chart of accounts and VAT codes, registering as an employer if hiring, and documenting intercompany agreements with the parent. Setting up administration correctly from day one prevents costly year-end corrections.

Does a Dutch BV automatically get a VAT number?

In most cases, the Tax Administration registers the BV after KvK registration and mails a VAT identification number and filing obligations. If the business will start trading quickly or has special circumstances, it is wise to check the status proactively.

Which records does a Dutch BV legally need to keep?

A BV must keep a complete record of all income, expenses, assets, and liabilities, including invoices, bank statements, contracts, and payroll records. The administration must be organised so that rights and obligations can be determined at any time, and must be kept for at least seven years.

BV vs. Branch Office

What is the difference between a Dutch BV and a branch office?

A BV is a separate Dutch legal entity with limited liability. A branch office is part of the foreign parent company, which remains fully liable for the branch’s obligations. Both are registered with the KvK.

How do bookkeeping and compliance differ between a BV and a branch?

A BV prepares and files its own Dutch annual accounts and corporate income tax return. A branch generally files the foreign parent’s annual accounts with the KvK, and pays Dutch corporate income tax only on profits attributable to the Dutch permanent establishment, which requires a well-documented profit allocation. Both may need to register for VAT and payroll taxes.

Which structure is better for a foreign company entering the Netherlands?

A branch is quicker and simpler to set up, and profit transfers to the head office are not subject to dividend withholding tax. A BV offers limited liability, more credibility with local customers and banks, and easier access to certain Dutch tax regimes. The right choice depends on risk exposure, expected size, and the parent’s home-country tax position.

Payroll and the 30% Ruling

What is the 30% ruling?

The 30% ruling allows employers to pay qualifying employees recruited from abroad a tax-free allowance of up to 30% of their salary to cover extraterritorial costs, for up to five years. The employer and employee apply jointly to the Dutch Tax Administration.

What are the salary requirements for the 30% ruling in 2026?

For 2026, an employee with specific expertise must earn more than €48,013 annually, or €36,497 if under 30 with a qualifying master’s degree, and the ruling can be applied only up to a salary cap of €262,000.

Is the 30% ruling changing?

Yes. From 2027, the maximum tax-free allowance drops to 27% for the full period of up to 60 months, while for 2025 and 2026 it remains 30%. The salary requirements also rise in 2027. Employees who applied the ruling before 1 January 2024 keep the full 30% under transitional rules.

How does the 30% ruling affect payroll administration?

Payroll must correctly split salary into taxable wages and the tax-free allowance, monitor the salary threshold and cap each year, track the end date of each employee’s ruling, and adjust when an employee changes employers. Errors typically surface in audits of the payroll tax return.

DGA Salary and Reporting Rules

What is a DGA in the Netherlands?

A DGA (directeur-grootaandeelhouder) is a director-shareholder who holds a substantial interest, generally 5% or more, in a BV and works for it. Many foreign-owned BVs with a local managing shareholder fall under these rules.

What is the minimum DGA salary in 2026?

Under the customary wage rule, a DGA’s salary in 2026 must be the highest of: the salary for the most comparable job, the salary of the highest-paid employee in the BV or affiliated companies, or €58,000 (up from €56,000 in 2025). A lower salary may be allowed in certain circumstances, such as part-time work or loss situations threatening the company’s continuity.

What other rules apply to DGAs?

Loans from the BV to the DGA and related persons above €500,000 (excluding qualifying home mortgages) are taxed as deemed income under the excessive borrowing rules. Dividends are taxed in Box 2 of the DGA’s personal income tax. DGAs are usually not covered by Dutch employee insurance schemes, which affects payroll setup.

Exact Online vs. SAP

Is Exact Online or SAP better for multinational bookkeeping?

It depends on scale and structure. Exact Online is a cloud accounting system built for the Dutch market that fits small to mid-sized entities and local subsidiaries. SAP (such as S/4HANA or Business One) is designed for complex, multi-entity and multi-country groups that need ERP functionality, advanced consolidation and group-wide reporting.

Why do many Dutch subsidiaries of international groups use Exact Online?

Exact Online supports Dutch VAT returns, ICP reporting, Dutch bank feeds and the Dutch audit file format out of the box, which makes local compliance efficient. Its cost and implementation time are much lower than a full ERP rollout.

Can Exact Online and SAP be used together?

Yes. A common setup is to run local Dutch bookkeeping in Exact Online and report to the group’s SAP environment through mapped charts of accounts and periodic data exports or integrations. This keeps local compliance simple while supporting group consolidation.