Dutch VAT Groups Change in 2024

Dutch VAT groups scheme changes in 2024 have an impact on foreign businesses. Transactions between a permanent establishment and the head office are now relevant for VAT purposes.

The Dutch VAT group rules changed as of January 2024. Consequently, the transactions between a permanent establishment and the head office, one of them being part of a Dutch VAT group, are no longer considered as intra-group transactions and, therefore, these transactions become VAT relevant.

Therefore, there are two scenarios where the new rules have an impact for businesses operating at international scale:

  • The Netherlands allows permanent establishments of foreign companies to be part of a Dutch VAT group. In the past, the transactions between the Dutch permanent establishment part of a VAT group and the head office were considered as part of the intra-group transactions. According to the previous Dutch interpretation, the head office was also part of the Dutch VAT group.
  • Similarly, in the past, when the head office of a Dutch company was part of a VAT group, the transactions with a foreign establishment were also considered intra-group transactions and, therefore, disregarded for VAT purposes.

However, as of 1 January 2024 the transactions between the head office and the permanent establishments, one of them being part of a Dutch VAT group are no longer disregarded for VAT purposes. These transactions shall be treated according to the normal VAT rules. Find here the official information.

For more information about Dutch VAT groups, have a look at the section from our VAT manual

Related VAT news

We use cookies to offer an improved online experience. More information