Compliance

VAT Compliance in 2025: Dutch Updates and Common Mistakes

4 min read

Feb. 16, 2023

6:56

If your business is VAT registered, you’re entitled to reclaim VAT on eligible expenses. While this can be a valuable source of savings, VAT compliance remains a challenging and ever-changing landscape, particularly for companies operating across multiple jurisdictions.

With new regulations rolling out in the Netherlands and the EU, and familiar mistakes still tripping up many businesses, it’s more important than ever to stay on top of VAT developments and streamline your reclaim process.

Don't know what VAT stands for? Explore our glossary page.

Dutch VAT updates for 2025

Based on our partner's blog "Global VAT Guide: June 2025."

SPV guidance from the EU VAT committee

On 23 April 2025, the EU VAT Committee issued new guidance following its 125th meeting, clarifying how to determine the taxing country for supplies made using Single-Purpose Vouchers (SPVs):

Service type	Rule for VAT determination	Relevant article
Electronic services (B2C)	VAT is due where your customer is located	Article 58 (VAT Directive)
Electronic services (B2B)	VAT is due where your customer’s business is established	Article 44 (VAT Directive)
Non-electronic services – immovable property	VAT is due where the property is located	Article 47 (VAT Directive)
Non-electronic services – goods (no transport)	VAT is due where the goods are at the time of supply	Article 31 (VAT Directive)

This new clarity helps businesses issuing SPVs confidently apply VAT rules across EU Member States, minimising audit risk and simplifying cross-border compliance.

Updated VAT rules for public transport and taxi receipts (Netherlands)

As of 9 May 2025, the Dutch Tax Authority has modernised invoicing rules to reflect digital transport payments. Businesses can now use a “transactieoverzicht” (transaction summary) as a valid VAT invoice, even when no paper ticket is issued.

What must the digital receipt include?	Details
Date of issue	The date when the receipt is generated
Supplier identity	For example, the public transport operator
Journey date	The date of travel
Distance travelled	The total distance covered
VAT breakdown or calculation details	Either the VAT breakdown or enough information to calculate it (e.g. total with 9% VAT)

This update simplifies compliance for:

Businesses reimbursing employee travel
Companies reclaiming VAT on transport expenses
Transport providers using contactless or app-based systems

Early VAT return rejections begin 27 May 2025

To improve processing efficiency, the Dutch Tax Authority has announced that early VAT returns will be automatically rejected starting 27 May 2025.

What’s changing?

VAT returns submitted before the 24th calendar day of the final month in the reporting period will be rejected.

Examples:

Q1 return submitted before 24 March = rejected
Q2 return submitted before 24 June = rejected

What you need to do:

Update your internal VAT filing timelines
Configure accounting systems to align with the new submission windows
Always submit on or after the 24th of the last month in your VAT period

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What are common VAT compliance issues, and how can you avoid them?

Despite best intentions, many companies still lose out on reclaimable VAT due to preventable errors. Here are four of the most frequent VAT compliance pitfalls, and how to avoid them with modern tools and practices.

4 common mistakes made by employees in the Netherlands:

1. They lose their receipts which results in huge fines

That faded, crumpled receipt in someone’s pocket? It could be costing your business reclaimable VAT.

Solution: Switch to an automated expense management solution. Mobilexpense enables employees to capture and submit receipts on the go. Images are stored securely and integrated into your finance systems, ensuring:

No more end-of-month receipt hunts
Complete audit trails
Maximum reclaim on eligible expenses

2. They often submit duplicate claims

A common error: claiming VAT on both the pro forma invoice and the final invoice. Over time, this can lead to serious penalties or red flags in audits.

Solution: Automated expense systems flag duplicate entries before they’re processed, giving your finance team the confidence that each claim is legitimate and accurate.

3. They fail to comply with VAT regulation changes

VAT rules change regularly, especially if you operate across multiple EU Member States. Without close monitoring, your business could easily miss out on claims or fall out of compliance.

Solution: For businesses operating internationally, working with a VAT recovery agent is often the safest route. These experts stay on top of regional VAT updates and ensure:

Your claims are always compliant
You maximise recoverable VAT
You avoid costly penalties and resubmissions

4. They aren't sure what is included in their company's expense policy

Client dinners and entertainment may seem deductible, but VAT recovery on such expenses is often disallowed.

What you can reclaim:

Team-building events
Staff parties
Internal celebrations

What you can’t:

Customer-facing entertainment
Client hospitality in most cases

The line can be blurry, which is why human oversight, backed by digital workflows, is essential for classifying and verifying these expenses correctly.

TL;DR

Mistake	Impact	Solution
1. Losing receipts	Lost VAT reclaim and risk of fines due to missing proof.	Use an automated expense management solution to capture receipts on the go, store them securely, and ensure audit trails.
2. Submitting duplicate claims	Duplicate VAT claims (e.g. pro forma + final invoice) trigger audits and potential penalties.	Implement automated duplicate detection to flag and prevent duplicate entries before processing.
3. Not complying with VAT changes	Outdated VAT practices result in missed claims or costly non-compliance penalties.	Partner with a VAT recovery agent to stay compliant across regions and maximise VAT recovery.
4. Misunderstanding expense policies	Incorrect claims (e.g. client dinners) lead to rejected claims or VAT disallowances.	Combine clear policies with digital workflows for accurate classification and verification of expenses.

Get your VAT right

With regulatory updates, evolving tax authority expectations, and shifting digital norms, VAT compliance is no longer a back-office task — it’s a strategic financial opportunity.

By combining Mobilexpense’s mobile-first expense management platform and expert human verification your business can eliminate costly mistakes, maximise VAT reclaim, and stay ahead of regulatory changes.