VAT (Value Added Tax) is one of the most confusing topics for new freelancers. When do you charge it? How much? And what about international clients? This guide answers all your questions.
VAT (Value Added Tax) is one of the most confusing topics for new freelancers. When do you charge it? How much? And what about international clients? This guide explains everything you need to know.
VAT is a consumption tax that businesses collect on behalf of the government. As a freelancer, you add VAT to your invoices, collect it from your clients, and then pay it to the tax authorities. At the same time, you can reclaim the VAT you pay on your own business expenses.
21% — standard rate
This applies to most services and products: consulting, design, IT, marketing, web development, and most physical goods.
9% — reduced rate
This applies to specific goods and services: certain food products, medicines, books, magazines, and residential renovation services (under certain conditions).
0% or reverse charge
The 0% rate applies to exports outside the EU. The reverse charge mechanism applies when you provide services to VAT-registered businesses in other EU countries — you do not charge VAT, and the client accounts for it themselves.
Use our free [VAT calculator](https://askdirect.ai/zzp/btw-calculator) to quickly calculate the right amounts for any rate.
In the Netherlands, the standard filing frequency is quarterly (four times a year). If you have very high VAT transactions, the tax authority may require monthly filing. You file through the Belastingdienst portal (Mijn Belastingdienst Zakelijk).
Quarterly deadlines in 2026:
VAT owed = VAT you charged to clients during the quarter
Input VAT (deductible) = VAT you paid on business expenses (laptop, software, office rent, etc.)
Net VAT payment (or refund) = VAT owed − input VAT
If you paid more VAT than you collected, you get a refund. This can happen in quarters when you make large business investments.
If your annual turnover stays below €20,000, you can apply for the KOR (kleineondernemersregeling) VAT exemption. Benefits:
Downside: you also cannot reclaim VAT on your business expenses. If you have high business costs, it may actually be more beneficial to remain VAT-registered.
Private clients in other EU countries: You generally need to apply that country's VAT rate. There is a €10,000 threshold per year — above that, you must register for the OSS (One Stop Shop) system.
VAT-registered businesses in other EU countries: Apply the reverse charge mechanism. Include a note on your invoice and verify the client's VAT number via the VIES system.
Want to quickly calculate how much VAT to charge or what your net amount is? Use our free [VAT calculator](https://askdirect.ai/zzp/btw-calculator) — calculate excl. ↔ incl. for all three VAT rates instantly.
Once you understand the basics, VAT is more straightforward than it first appears. Use our [Freelance Toolkit](https://askdirect.ai/zzp) for VAT calculations, invoice generation, time tracking and more free tools for freelancers.
📌 This article provides general information. Your specific situation may differ — consult an accountant or check the Belastingdienst website for the most current rules.