Reverse charge for non-established suppliers – The Netherlands
According to art 194 of the VAT Directive, Member States may implement an optional reverse charge on supplies made by non-established businesses. The Netherlands has introduced this reverse charge on supplies of goods and services located in The Netherlands.
Where a non-established supplier supplies goods or provides services located in the Netherlands to a VAT registered and established customer, domestic reverse charge applies. It is not relevant if the supplier is registered or not.
Supplier requirementsNot established in The Netherlands (irrelevant if the supplier is registered or not for VAT)
Customer requirementsEstablished in The Netherlands
ScopeSupplies of goods and supplies of services located in The Netherlands
The domestic reverse charge on services is rather exceptional as it would only apply where the B2B rule on services does not apply. This is, for example, the case for supplies of services connected to immoveable property.
The following wording should be stated on the invoice when domestic reverse charge by non-established suppliers applies: "btw verlegd / Reverse charge applies according to article 12, para 3 of Dutch VAT law".