Indirect Tax News - December 2019

New VAT identification numbers for some

The VAT identification number of self-employed people and sole traders in the Netherlands includes the social security number of the person behind the business. For privacy reasons, as of January 2020 this group of entrepreneurs will receive new VAT identification numbers. The new VAT identification numbers will contain the land code, 9 random numbers, the letter B, and two numbers of control. For example, a new VAT identification number might be: NL123456789B01

The new number is to be used by these entrepreneurs for external communications. For example, the number must be used on invoices and client websites. The ‘old’ VAT identification number, however, should continue to be use for correspondences with the Dutch Tax Authorities. The Tax Authorities will internally connect such entrepreneurs’ old and new VAT identification numbers.  

Impact of the change

As noted, after receiving the new VAT identification number both numbers will remain and those Dutch entrepreneurs that receive a new number should use their old VAT identification number to file their VAT returns in the Netherlands and to correspond with the Dutch Tax Authorities. In the VIES-control system, however, the old VAT identification number will be replaced with the new number.

For entrepreneurs outside the Netherlands, it’s important that beginning 1 January 2020 the new VAT identification number is on invoices they send to, and receive from, Dutch self-employed people and sole proprietors. Entrepreneur outside the Netherland should check to ensure that the new VAT number is used in the VIES-control system. As well, they should also take care to adjust the VAT numbers in their enterprise resource planning (ERP) system.

Checking that the new number is used will also avoid issues regarding, for example, the application of the VAT zero rate.

Marco Beerens

Joost Vermeulen