All sole traders will soon be issued with a new VAT registration number. This has been announced by the Tax and Customs Administration on its website. This number does not include the trader’s BSN. Other businesses (partnerships, general partnerships (VOFs), private limited companies (BVs), public limited companies (NVs), foundations, associations and similar entities) already have a VAT number that is different from the BSN.
Letter
The Tax and Customs Administration will notify you of your new VAT registration number by post. The new number must be used in all dealings with customers and suppliers with effect from 1 January 2020.
Naturally, VAT returns must be submitted using the new number from 1 January 2020. The Tax and Customs Administration will ensure that, with effect from 1 January 2020, VAT returns (and other declarations) are automatically set up under the new VAT identification number.
The VAT registration number consists of the following elements:
- the letters NL (the country code);
- followed by 9 digits;
- with the suffix “B01” (or higher).
Businesses must include the new VAT registration number on VAT invoices issued from 1 January 2020 onwards. This also applies to invoices issued by their suppliers under the reverse charge mechanism. Furthermore, the new number must be stated on the website, quotations and various other communications.
VAT number
We refer above to the VAT identification number, but also to the VAT number (the Tax and Customs Administration also uses the term ‘turnover tax number’).
The VAT number is used for domestic purposes. It consists of 9 digits followed by “B01” (or higher).
The VAT identification number (including the country code) is important for incoming and/or outgoing transactions within the European Union. For this reason, the country code has been added to the VAT number. Suppliers and customers from other Member States of the European Union must be informed of the new VAT identification number. If invoices for services provided in 2019 still show the old VAT identification number, this does not need to be corrected.
Businesses that import goods from outside the European Union and hold a reverse-charge authorisation will receive a new authorisation from the Tax and Customs Administration under their new VAT registration number.
New KOR
Businesses wishing to apply the new KOR can submit their application using their current VAT number. The KOR will then apply to the new VAT number with effect from 1 January 2020.
You must notify the Tax and Customs Administration of your decision to apply the new KOR by 20 November 2019 at the latest. Read more about the new KOR in our article The Small Business Scheme (KOR) under VAT legislation.