The limited liability company, BV or LLC, is the most common business form registered in the Netherlands. It benefits from low company formation costs and a simple registration procedure; however, it will be subject to specific tax obligations.
The first obligations related to the registration of an LLC are registering for taxation and for VAT purposes with the Dutch tax authorities. Below, our Dutch company formation agents have outlined the tax obligations after setting up an LLC in this country.
We can also help foreign investors who want to open companies, no matter their type, in the Netherlands.
In order to have an accurate picture of the fiscal liability of a BV company in the Netherlands, the shareholders must define the accounting department of the company. While this department will be in charge of supervising the financial activities of the company and registering all the invoices and other financial documents of the business, the director or directors will have the task of reporting to the authorities (tax authorities and Trade Register) and to the shareholders the financial status of the company.
There are two types of BV companies which can be established in the Netherlands. The first one is the regular BV and the second one is the simplified BV. This categorization is necessary as the tax obligations to be respected depend on the chosen structure for the BV. Our company registration consultants in the Netherlands can explain the differences between the two types of LLCs.
The BV is required to file the following financial documents with the Dutch tax authorities:
Simplified BVs which are categorized as small enterprises must file the annual financial statement with annual accounts which need not be audited, the balance sheet and notes which explain the balance sheet. They must also file corporate income tax and VAT returns if they are registered for VAT.
Filing the annual financial statement is the most important tax obligation which must be fulfilled by a BV in the Netherlands. It must contain the following:
Before filing the annual financial statements, they must be presented to the BV’s shareholders during the Annual General Meeting.
The filing of the financial statements must follow these requirements:
We also offer accounting services for LLCs in the Netherlands, among which the preparation and filing of the financial statements are of the highest importance.
The tax obligations after setting up a Dutch LLC also imply filing a corporate tax return which must occur no later than 5 months after the end of the previous financial year. The document is revised by the tax authorities and based on it the tax assessment based on which the corporate tax must be paid is issued.
This requirement also applies to Dutch branch offices of foreign companies.
Dutch LLCs must also file VAT returns based on the amount of money representing the VAT on its transactions. The VAT returns must be filed based on the following calendar:
For full information on the tax obligations of LLCs in the Netherlands, please contact us. We remind you that we are at your disposal with full company formation services in the Netherlands.