When you are an entrepreneur in the Netherlands, you might have noticed the Dutch tax office tries to communicate with you about a new VAT number. What is that about?
The new VAT number
The new Value Added Tax number is a consequence of the updated privacy rules. The old privacy rules were not very different from the new privacy rules, but now a EUR 5 mln penalty is connected to not complying, which makes even a huge institute as the Dutch tax office comply.
If you have a so called one man company, your Dutch tax number (BSN) was used for your VAT number by simply adding B01 to the 9 digit number. The VAT number you are obliged to put on the invoice you send to the client, hence your VAT number or actually your BSN number was public knowledge.
The moment your BSN number is connected with your date of birth, address etc which is all very simply to obtain via Chamber of Commerce registrar or the invoice you issued, identify fraud is possible.
The tax office does not want to pay a penalty, so now finally they comply by issuing you a new VAT number. More important, one step has set to prevent you from your identity being stolen.
The new Value Added Tax number – what has changed?
In the letter the tax office send you, you find in the middle on the right side the new VAT number you use to communicate with clients. On the left you find the BSN number plus a B and then another number. That number you need to keep to be able to communicate with the Dutch tax office.
Till December 31 2019 nothing changes. From January 1, 2010 you need to use the new number.
The VAT number – what are you obliged to do?
A new VAT number implies this number needs to be used as instructed in article 35a of the VAT act. This implies your invoices needs to show your new VAT number, you need to provide the new details to your tax advisor, accountant etc.
Also important is to inform your EU relations that invoice you at 0% using your VAT number on that invoice, about the new number.
You can look at this change as an annoyance, but you can also look at the bright side. The tax office is finally shielding one of the most important details you have, your personal tax number. Plus you have now an opportunity to update your invoices to a 2020 style, as you need to update the VAT number on your invoices.