VAT: how it works and what to charge
Many nonprofits have few taxable activities. As a result, most of the VAT paid by your organization is not reclaimable from the tax authorities. In this page you will find an overview of what you should charge, what you can reclaim and how to deal with the confusing topic of reverse charges.
How VAT works for a nonprofit
A VAT-registered organization conducts economic activities (selling goods or services) and files periodic VAT returns with the Belastingdienst .
An organization can only reclaim the VAT it pays on purchases that relate to its taxable activities. Most nonprofit income (donations, grants) falls outside the scope of VAT, and many nonprofits have few taxable activities. The consequence: most of the VAT a nonprofit pays is not reclaimable and is simply part of the cost.
Invoices your organization sends
- Taxable services to Dutch customers (for example workshops or services delivered to another organization): charge the standard Dutch rate, currently (July 2026) 21% (see Belastingdienst: Tarieven en vrijstellingen ).
- Business customers with an EU VAT registration outside the Netherlands: apply "VAT reverse-charged" and state the customer's VAT number on the invoice. It is good practice to verify the number first via the EU VIES VAT number check .
- Individuals: individuals have no VAT registration, so charge Dutch VAT.
- Donation requests and proof of donation: a donation is not a taxable activity, so these documents carry no VAT. Keep them visually distinct from invoices to avoid confusion at the donor's side.
Invoices your organization receives
From Dutch suppliers. The invoice states VAT, usually 21% but 9%, 0% or no VAT also occur. As explained above, your organization usually cannot reclaim this VAT.
From EU suppliers. An invoice from a business registered elsewhere in the EU should state "VAT reverse-charged" and show no VAT amount. Two things matter here:
- The real cost is higher than the invoice total. Reverse charge means your organization must pay Dutch VAT (21%) on the amount itself. A business that can reclaim VAT sees these two cancel out; a nonprofit that cannot reclaim pays it for real. Budget for invoice amount plus 21%.
- Wrong invoices are fixable. If an EU supplier charges local VAT instead of applying the reverse charge, send the supplier your VAT number and ask for a corrected invoice. Platforms usually have a field in their account settings where you can enter your VAT number, so every next invoice comes out right.
Why the reverse charge exists: the EU rule is that a business buyer pays the VAT rate of its own country. This exists to maintain fairness within the "free market" 
In practice the buyer keeps the VAT out of the payment to the supplier and remits it directly to its own tax authority. That remittance is what "VAT reverse-charged" stands for.
In practice the buyer keeps the VAT out of the payment to the supplier and remits it directly to its own tax authority. That remittance is what "VAT reverse-charged" stands for.
From contractors. The same rules apply, with your organization as the buyer of the contractor's services:
- 21% VAT for a contractor with a Dutch VAT registration;
- "VAT reverse-charged" for a contractor with an EU VAT registration outside the Netherlands;
- No VAT on the invoice for a contractor outside the EU.
When a contractor re-invoices expenses, check that the amounts are exclusive of local VAT before the contractor applies the rule above.
Confirm with your tax advisor: for services bought from suppliers outside the EU, a Dutch organization generally still has to self-account Dutch VAT in its own VAT return, even though the supplier's invoice shows no VAT.
Good to know
- VAT rules contain many exceptions. This page covers the situations a Dutch nonprofit meets most often, not the full legislation. When in doubt, check the Belastingdienst VAT pages or ask your tax advisor.