If you're VAT-registered, you can usually offset the VAT on the invoice for your website and hosting against the VAT you charge yourself.
What does this mean in practice?
VAT is a tax added on top of the price of most products and services. In the Netherlands, the standard rate is 21 per cent. A reduced rate of 9 per cent applies to certain products and services, and some are exempt.
Why does this matter for your business?
Business owners registered for VAT can usually reclaim the VAT on business purchases. Their real cost is then the amount excluding VAT. If you use the small business scheme (KOR), you don't charge VAT, but you can't reclaim it either. For you, the amount including VAT is what counts.
Examples and best practices
- Know whether you're VAT-registered or use the KOR (small business scheme).
- Understand the difference between costs including and excluding VAT.
- Put your VAT number on your invoices.
- If in doubt, ask your accountant.
How we do it at Ikoon
Ikoon invoices show VAT separately. If you're registered for VAT, you can usually offset that VAT in your VAT return. That way, you know exactly what your website and the €35 per month hosting really cost you.