Which VAT rate applies to your service?
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
The general VAT rate is 21 per cent, 9 per cent applies only to a fixed list of goods and services, and accommodation moved to 21 per cent on 1 January 2026.
- Costs you pass on follow the rate of your main service, not the rate at which you bought them.
- A package price with 9 and 21 per cent is split by the actual ratio; if you cannot substantiate it, 21 per cent applies.
- An exemption removes your right to deduct input VAT; the zero rate keeps that right.
- If you wrongly charge 9 per cent, the tax authorities collect the difference from you, not from your client.
One of the first things you need to know as an entrepreneur is which VAT rate to charge. There are different rates, and which applies depends on what you supply. Using the wrong rate can cause problems. This article lists the rates.
What is the general rate?
The general VAT rate is 21%. This applies to most goods and services. If you supply a product or service for which no reduced rate or exemption applies, you charge 21% VAT. For many freelancers, such as in business services, this is the standard rate. How to add that percentage exactly, and how to extract it from an amount including VAT, is set out in calculating VAT.
| Rate | For what |
|---|---|
| 21% | The default: consultancy, construction, technical work, marketing, most products |
| 9% | Food and drink, books, hairdressing, passenger transport, sport, painting and plastering on homes over two years old |
| 21% since 2026 | Accommodation: hotels, holiday homes and bed and breakfasts |
| Exempt | Care, education and financial services, without the right to deduct |
| Reverse-charged | Subcontracting in construction and business clients in the EU |
When does the reduced rate apply?
For certain goods and services a reduced rate of 9% applies. Think of food, books, medicines and some services such as hairdressers, bicycle repairers and providing the opportunity to take part in sport. The list is specifically set, so check whether your service falls under it before applying this rate.
When is something exempt?
Some services are exempt from VAT, such as certain services in healthcare, education and the financial sector. If you're exempt, you charge no VAT, but you also can't reclaim the VAT on your costs. It's important to know whether your work is exempt.
How do you know which rate applies?
The correct rate depends on the precise nature of your product or service. If in doubt, check the rules or ask your bookkeeper. Charging the wrong rate can lead to additional assessments or too high a price for your client. When in doubt it's better to figure it out properly in advance.
The borderline cases where it goes wrong
Most errors do not arise with the main rate, but with jobs in which two things run together. A job partly at 9 and partly at 21 per cent, costs you pass on, or a service you supply to a client abroad.
- Costs you pass on follow the rate of your main service, not the rate at which you bought them. See passing on costs.
- A package price containing both 9 and 21 per cent is split according to the real ratio. If you cannot substantiate it, 21 per cent applies to the whole.
- If part of your work is exempt, you may deduct only part of your input VAT. That is often forgotten.
- A down payment follows the rate of the work it belongs to, and is due in the period in which you invoice or receive the money.
Frequently asked questions
Which VAT rate should I charge as a freelancer?
Twenty-one per cent, unless your service or product is explicitly listed under 9 per cent or an exemption. Business services, consultancy, construction and technical work are almost always at 21 per cent.
What changed in the rates in 2026?
The reduced rate on accommodation has ended: a hotel stay is now 21 per cent. The announced increase for culture, media and sport was reversed; they stay at 9 per cent. Hairdressing services also remain at 9 per cent.
What is the difference between exempt and the zero rate?
With an exemption you charge no VAT and cannot deduct input VAT. With the zero rate you charge 0 per cent but keep your right to deduct. See exemption versus zero rate.
What if one job involves two rates?
Split the invoice per rate, with separate lines and subtotals. If you cannot substantiate why part falls under 9 per cent, charging 21 per cent on the whole is the safe route.
I charged the wrong rate. What now?
Correct it with a credit invoice and send a new, correct one; see credit invoice. If you charged too little VAT, you owe the correct amount regardless, even if your client does not pay the difference.
Is there a separate rate for clients abroad?
Often yes. For business clients in the EU you reverse-charge the VAT; for clients outside the EU the service is usually not taxed in the Netherlands. See VAT with clients abroad.
Sources
- VAT rates: 21%, 9% and 0%Belastingdienst · belastingdienst.nl
- VAT on accommodation from 1 January 2026Belastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
