Various Dutch Taxes
Expats in the Netherlands should be aware of assorted Dutch taxes they may have to pay such as the ‘belasting op toegevoegde waarde‘ (value-added sales tax), ‘motorrijtuigenbelasting‘ (road tax), ‘waterschapsbelasting‘ (water board tax), ‘hondenbelasting‘ (dog tax)…
Aside from Dutch personal income tax, there are several other taxes or charges you will come across when you live in Holland. Below is a brief overview of what each tax is, where the charge comes from and when you see it.
BELASTING OP TOEGEVOEGDE WAARDE
BTW is the value-added tax charged when you purchase a product or service in the Netherlands. There are 3 BTW tax rates, the one charged depends on the category the product/service falls into:
- 21% – this tax rate applies to the majority of products and services purchased.
- 9% – this lower rate applies to select categories of products (such as medicines, certain foods and drinks, books, newspapers and magazines) and services (such as bike repair, hairdressing, camping facilities and swimming pools). Prior to 01 January 2019, this low rate was 6%.
- 0% – a handful of product categories (for example, wholesale fish or goods in an excise warehouse) and services (such as education classes, healthcare services, childcare and sports activities) are completely exempt from BTW sales tax.
MOTORRIJTUIGENBELASTING
MRB is the Dutch road tax (i.e. the charge for using public roads to drive on). This amount varies based on the vehicles size, weight and other factors. It needs to be paid every 3 months.
BELASTING VAN PERSONENAUTO’S EN MOTORRIJWIELEN
BPM is the Dutch personal motor vehicle tax and is a one-time tax that needs to be paid when you purchase a car or import a foreign vehicle. The amount varies based on factors like the size of the engine.
HONDENBELASTING
Hondenbelasting is a Dutch tax on dog owners. It is levied at the local level and municipalities can decide whether they have one or not. It is one of the oldest taxes in Holland but nowadays less than 50% of municipalities still use it. Those that do decide the amount of their dog tax. The amount typically goes up with each additional dog. The annual bill usually comes in February.
WATERSCHAPSBELASTING
Waterschapsbelasting is the Dutch water board tax. It has three different components/fees:
- Watersysteemheffing – use of local water system
- Zuiveringsheffing – waste water treatment
- Verontreinigingsheffing – pollution charge
Renters pay the first two portions, while the property owner pays the third portion. Residents who own their home/apartment pay all three portions.
AFVALBELASTING
Afvalbelasting is the Dutch garbage/refuse tax. Each household must pay it for trash collection and recycling services.
Related information…