9.1     General information

Staff members of international organisations may enjoy certain fiscal privileges. These privileges are granted in the interests of the organisation, so that it can function efficiently, and not for the personal benefit of its staff. 

Staff members with Dutch nationality or who are permanent residents in the Netherlands do not enjoy the tax exemptions mentioned in the other sections of this chapter. They may however be exempted from income tax on their salary from the international organisation.

An exception applies to Dutch nationals who moved to the Netherlands from another EU member state since their position is in that case comparable to that of all other people who enjoy the rights and freedoms guaranteed by Article 45 of the Treaty on the Functioning of the European Union. This means they are entitled to the same tax privileges as privileged persons who are not Dutch nationals but are otherwise in the same position.

The tax regime of each organisation is laid down in the applicable headquarters agreement/seat agreement/exchange of notes. For more specific information about fiscal privileges, please refer to Annexe H or consult the Tax Administration.

The Tax Administration (Belastingdienst) has a special desk for international organisations, diplomatic missions and consular posts: Team IFB (Team Internationale Fiscale Behandeling).

Team IFB can be contacted by post (Postbus 30509, 2500 GM The Hague) or by email. 

Enquiries concerning these topics can be sent to the following email addresses:
Income tax:         Haaglanden.CB_IFB@belastingdienst.nl
VAT and excise duties: IFB.Diplomatieke.Privileges@belastingdienst.nl
Motor vehicles:     Particulieren.IFB.Bijzondere.Kentekens@belastingdienst.nl.

The address for visitors to the Hague office of the Tax Administration is: Prinses Beatrixlaan 512, 2595 BL The Hague.

The Ministry of Finance (Ministerie van Financiën) can be contacted as follows:
Postal address: Postbus 20201, 2500 EE The Hague
Telephone: +31 (0)70 342 8000
https://www.government.nl/ministries/ministry-of-finance

9.2     Income tax

Staff members of international organisations are exempt from Dutch income tax on salaries and emoluments paid to them by the international organisation if the statute of the organisation or another international agreement provides for this exemption.

Staff members of an international organisation who, under the headquarters agreement or other agreements, are granted the same privileges, immunities, exemptions and facilities as are accorded to heads of mission, diplomatic agents or the administrative/technical staff of an embassy, and who are residents of the Netherlands, are resident taxpayers for the purpose of Dutch income tax. However, they will be treated as non-resident taxpayers. This means they will only be taxed on income not related to their official activities in the Netherlands, on immovable property located in the Netherlands (such as second homes) and on other income described in chapter 7 of the Income Tax Act.

9.3     Value Added Tax

9.3.1 Conditions and exemptions by way of refund

International organisations and staff members of international organisations who are eligible for the exemptions granted to diplomats with AD status are (subject to certain conditions and restrictions) exempt from paying value added tax (VAT; in Dutch ‘BTW’). Staff members with BO status are not exempt from paying this tax.

International organisations can be exempted from VAT paid on the supply of goods and services intended for their official use.

The main rule in the Netherlands is that exemption from the payment of tax is granted by way of a refund.

Exemption from VAT for official use 
Exemption from VAT is granted only where the invoice amount is at least €225 (excluding VAT). If separate goods or services amount to more than €225 (excl. VAT) on the same invoice, this invoice may be approved for refund of VAT. The goods and services, and the VAT amount, must be specified on the invoice. Multiple purchases from the same seller in the same calendar quarter can be added together to reach this threshold if they do not meet the minimum amount separately. 

Staff members eligible for exemptions granted to diplomats with AD/AO status 
Staff members of international organisations who are eligible for the exemptions granted to diplomats with AD/AO status are (subject to certain conditions and restrictions) exempt from paying VAT on a reasonable amount of movable goods intended for personal use (other than motor vehicles, food and alcoholic or other beverages).

The exemption from VAT applies only to invoices amounting to at least €225 excluding VAT. Services for personal use are not exempt. If an invoice relates to both goods and services, this must be specified on the invoice. The VAT applicable to the goods and services must also be specified, since a refund will only be granted for the purchase of goods.

Invoices from the same supplier may be aggregated within the same calendar quarter if they do not meet the minimum amount of €225 separately. No exemption will be granted if purchases made by different persons (other than members of the same household) have been added together on the same invoice.

The exemption does not apply to goods supplied by hotels, restaurants, cafés, catering organisations and related bodies. Furthermore, immovable property is excluded from the exemption. 

Exemption from VAT is not granted in respect of goods which exceed a reasonable amount, are returned, are used for business purposes, or which are sold, given away, hired out or in any other way put at the disposal of third parties by the person concerned.

9.3.2 Additional conditions and restrictions on VAT exemption for personal use

Privileges and immunities are not intended to benefit individuals (privileged persons), but to ensure that they can perform their duties efficiently in the host country (in this case, the Netherlands). In view of this principle, the Inspector of Taxes has exercised their authority to establish further conditions and restrictions relating to the granting of the VAT exemption and has decided to exclude a number of goods from the exemption or restrict the exemption of these goods from VAT. Goods whose purchase confers an individual benefit that overrides the interest of ensuring efficient functioning are excluded from the exemption (either in whole or in part).

Goods on which no VAT can be refunded:

•    aircraft (including parts and other accessories);
•    all boats (such as sailing yachts and motorboats), including parts and other accessories;
•    vehicles intended for recreation, such as trailer tents and caravans (including parts and other accessories);
•    horse trailers and motor vehicles intended for the transport of horses, including parts and other accessories;
•    arms and firearms, including parts and other accessories;
•    all animals other than small pets such as dogs and cats.

This list is not exhaustive. This means that the Tax Administration can exclude other goods from the exemption where the individual benefit would override the interest of ensuring efficient functioning.

Goods on which a limited refund of VAT is granted

A maximum purchase price applies for exemption from VAT on the following goods. The maximum purchase price is €5,000 per individual item including VAT. If the purchase price is more than €5,000 including VAT, the VAT charged on the amount above €5,000 will not be refunded. Please note, the list is not exhaustive:

•    jewellery, watches, handbags, suitcases and similar goods;
•    works of art (such as paintings and sculptures) and similar goods;
•    other moveable property (such as speakers, video cameras, cameras (including accessories), fitness equipment, musical instruments and drones).

Assuming a VAT rate of 21%, the maximum amount of VAT refunded would be €867.77 in these cases.

9.3.3 Reporting obligation (official use and personal use)

The VAT exemption is granted conditionally. If the conditions are no longer met, the exemption ceases to apply and the taxes covered by the exemption become payable. The taxes due are calculated on the basis of the current value of the goods in that instance.

The conditions are in any event no longer met if the goods bought under the exemption are sold or given away. The conditions are also no longer met once the privileged person’s employment in the Netherlands ends.

For goods with a purchase price of more than €3,100 (including VAT) and for goods with a purchase price of €3,100 or less that have been used for less than five years, a reporting obligation exists. This obligation must be met before the exemption expires.

9.3.4 Refund requirements

The refund will be granted only if the goods or services in question are recorded using form OB 100/101, and if the application also includes proof of payment and dated invoices which clearly state: 

•    the name and address of the business that supplied the goods or service; 
•    the name and address of the person to whom the goods or service were supplied; 
•    the date on which the transaction subject to VAT took place;
•    a clear description of the goods or service; 
•    the quantity of the goods supplied; 
•    the amount paid; 
•    the amount of tax due on the supply of goods or services. 

If the Dutch VAT number is stated on the invoice, the VAT has probably been paid in the Netherlands. Team IFB can authenticate a VAT exemption certificate if VAT has been paid in another EU member state (and all conditions have been met). The VAT paid can be reclaimed with the authenticated certificate in another member state (11.3.3 Purchasing outside the Netherlands but within the EU).

NB: Additional requirements are applicable when requesting a tax refund for the purchase of motor vehicle fuel and car parts (see section 11.6.3 ‘Car parts (package A only) and 11.6.4 ‘Excise duties and VAT (package A only) on motor vehicle fuel’). 

Proof of payment is a copy of a bank statement showing the following information:

•    the international bank account number (IBAN);
•    the name of the account holder; and
•    the payment.

Transaction detail overviews that do not clearly reflect this information or are known to be editable will not be accepted as proof of payment. 

No refund will be granted for purchases that are paid for wholly or partly in cash or with gift cards due to the absence of proof of payment.

Receipts are not generally considered to be invoices (or proof of payment) because they do not meet the requirements set out above. A receipt will only be accepted instead of an invoice if:

•    the goods are clearly described; and 
•    a copy of a valid bank statement is attached showing the IBAN, the name of the account holder (buyer) and the payment. 

9.3.5 Refund procedure (official use and personal use)

The following procedure applies to international organisations eligible for exemption from VAT on the purchase of goods and services intended for official use and the purchase of a reasonable amount of movable goods (except food and beverages) intended for personal use by their staff members with AD/AO status. 

As a rule, exemption from VAT takes the form of a refund of tax paid following the submission of a refund request (form OB 100/101).

One form OB 100 and/or 101 may be submitted per calendar quarter. Submitting more than one refund request per calendar quarter is not permitted. The refund will only be granted if the goods or services (in the case of official use) are recorded using form OB 100, and if the application also includes proof of payment and dated invoices as mentioned in 9.3.4 (Refund requirements).

The deadline for submitting a VAT refund request is three months after the end of the calendar quarter in question. Invoices and/or receipts must be dated within the period (calendar quarter) specified on form OB 100/101. The invoice date is decisive for determining the correct period. 

Applications for refunds relating to purchases for official use of the organisation must be signed by or on behalf of the head of the organisation. 

Applications for refunds relating to purchases for the personal use of staff members including administrative, technical or service staff members must be signed by the applicant. 

9.3.6 Direct exemption (zero VAT rate) for the supply of goods and services in the Netherlands

In the context of official use, an international organisation can also be granted advance VAT exemption on goods and services under certain conditions. The amount invoiced must be at least €35,000 (excluding VAT). The advance exemption can also be granted if there is a continuous supply or a rental agreement based on a contract. Advance exemption from VAT can be requested by submitting a certificate and other relevant documents. Team IFB will then assess whether the exemption can be granted.

Certificate 
The certificate is the ‘VAT and/or Excise Duty Exemption Certificate’ (Article 151 of Directive 2006/112/EC and Article 13 of Directive 2008/118/EC). The certificate may be in either Dutch or English. A separate certificate is needed for each purchase. The certificate can be obtained from Team IFB. The international organisation must submit a written request to Team IFB in advance, together with the following: 
a) the completed certificate; and 
b) a proforma invoice, quotation or contract signed by the parties, proving that the total amount of the taxable supply of goods or services is at least €35,000 (excluding VAT) or that there is a continuous supply or rental of premises for the official use of the international organisation.

If the application is approved, the certificate will be stamped by Team IFB. The completed and stamped certificate must be submitted to the supplier (before the transaction takes place), who should keep it in their records as proof that no VAT needs to be charged. The supplier may then provide the goods or services free of VAT, applying a 0% VAT rate on the invoice. The certificate can also facilitate exemption from VAT on purchases in other EU member states.

Team IFB can only authenticate original certificates submitted by regular mail. Requests submitted by email cannot be processed. If you have any questions or wish to request any of the relevant forms, please contact Team IFB by sending an email to: IFB.Diplomatieke.Privileges@belastingdienst.nl.

 
9.3.7 Purchasing outside the Netherlands but within the EU 

For transactions in other EU member states, a certificate is needed for each transaction in the other EU member state in order to prove to the supplier and to the tax authorities of the state in question that entitlement to exemption from VAT exists. Certificates for VAT exemption can be obtained from Team IFB. 

A request to authenticate a certificate must be submitted (to Team IFB) within three months of the invoice date. The dated invoice and proof of payment (bank statement) must be included with the request. Team IFB will then assess whether the goods (and/or services for official use) are exempt if they were purchased in the Netherlands. The same conditions apply as for VAT refunds granted on the basis of an OB 100 form. If the conditions are met, Team IFB will authenticate the certificate. This certificate can be used to claim a refund of taxes paid in the EU member state where the goods were purchased.

Please note that an authenticated certificate will not be issued for taxes paid on the purchase of a motor vehicle.

9.4 Importing goods into the Netherlands

Subject to certain conditions, those eligible for this tax exemption may import goods originating from outside the EU duty-free. Procedures for the import of goods vary according to whether the goods are to be imported for personal or official use and whether the goods originate from within or outside the EU. 

The exemption from import duties is only granted in advance with an authenticated Customs form Douane 39 (D39). No refund will be granted afterwards.

See Annexe G for quotas applicable to alcoholic beverages and motor fuels.

9.4.1 Import of household effects (for personal use)

People moving to the Netherlands from a non-EU country may import personal household goods without needing to pay import duties, subject to certain conditions. Exemption is granted in advance by Team IFB by means of form D39. All the following conditions must be met in order to be eligible for the tax exemptions on importing personal goods:
• the person concerned has lived outside the European Union for at least 12 consecutive months immediately preceding their relocation;
• the person concerned has owned and used the goods for at least six months prior to moving to the Netherlands;
• the person concerned has used the goods and will be using them again;
• the person concerned is importing the goods within 12 months of taking up employment in the Netherlands or another EU country;
• the person concerned will not loan, pledge, sell, lease out or transfer the goods within 12 months of the date on which they were imported.

The following goods are not considered part of household effects and are therefore not eligible for exemption:
• alcoholic beverages or any other item that contains alcohol;
• tobacco and any other item that contains tobacco;
• company vehicles;
• non-portable materials for professional use.

All the conditions set by the tax authorities must be met in order to qualify for exemption from import duties on household effects. 

The Customs Administration’s website can be consulted for further information on this matter (please refer to the general information on Moving to the Netherlands). For more specific information, you can also contact Team IFB by emailing: IFB.Diplomatieke.Privileges@belastingdienst.nl.

9.4.2 Taxes and duties on imported goods originating outside the EU

The procedure
Subject to certain conditions (i.e. official use or personal use by eligible personnel) and restrictions (i.e. quotas), those eligible for this tax exemption may import goods (including alcohol) originating from outside the EU duty-free using form Douane 39 (D39).

The relevant conditions apply to both tax-exempt imports and tax-exempt purchases at a tax
warehouse (accijnsgoederenplaats, AGP). To calculate the quotas, both imports and AGP purchases
will be totalled. 

The application must be made by the head of the international organisation or their authorised representative. Their name and signature must be recorded at the Protocol Department in advance. They must complete and sign the forms and forward them to Team IFB. Team IFB will retain the office copy and, after approval, return the other copies to the applicant.

As a certified/approved form D39 is only valid for 14 days, the goods must reach their
destination within this period. Upon arrival of the goods, the recipient must acknowledge receipt
using the back of the customs copy of form D39. The form must then be signed as approved by
or on behalf of the head of the international organisation.

NB: Team IFB will only process a new application if the applicant has returned the previous copy. Exempt goods may not be loaned, pledged, hired out, transferred or used in a manner or for purposes not covered by the exemption.

Any application submitted by an international organisation which does not meet the stipulated conditions and requirements cannot be processed by Team IFB. Please contact Team IFB to request the relevant forms.

For questions concerning form D39 and the tax-free importation of goods, please contact Team IFB by
emailing: IFB.Diplomatieke.Privileges@belastingdienst.nl.

9.5 Transfer taxes on immovable property (for official use)

If the immovable property is intended to accommodate the international organisation, the exemption is granted in respect of rights in rem to such property.

Exemptions can only be obtained through the Protocol Department of the Ministry of Foreign Affairs, by sending a Note Verbale and submitting a deed of conveyance. International organisations that approach Team IFB directly to request exemption from transfer tax are redirected to the Protocol Department of the Ministry of Foreign Affairs.

If the application for exemption is received at least six weeks before the date of the property’s transfer, the Ministry of Finance can give the notary concerned permission to apply the zero rate.
Otherwise, the exemption will be granted in the form of a refund. 

In some cases, VAT, rather than transfer tax, is payable on the purchase of official immovable property. Here too, advance exemption may be obtained if a request is submitted to the Protocol Department at least six weeks in advance. Otherwise, the exemption will be granted in the form of a refund.

9.6    Motor vehicles

9.6.1    Motor vehicle tax (MRB)

Motor vehicles intended for official use by the international organisation (i.e. official cars) are exempt from MRB (motorrijtuigenbelasting).

Staff of an international organisation who are eligible for the exemptions granted to diplomats with AD status may be exempted from motor vehicle tax on vehicles intended for personal use (including use by their dependants). 

Exemption from motor vehicle tax is granted on the condition that the vehicles concerned have been issued with special registration plates (CD, CDJ, BN/GN); see chapter 10 (‘Cars’). 

Administrative, technical and service staff with BO or EO status are exempt from motor vehicle tax for 10 years, starting from when they first began working for the organisation in the Netherlands. This 10-year limit does not apply to higher ranking staff with AO status.

9.6.2    Car and motorcycle tax (BPM)

Exemption from BPM (belasting op personenauto's en motorrijwielen) is granted for motor vehicles intended for official use by the international organisation (official cars). These vehicles must be purchased, paid for and owned by the international organisation.

Staff members of an international organisation may be exempt from BPM, VAT and, if applicable, customs duties on one or two vehicles intended for personal use. Administrative, technical and service staff with BO or EO status are exempt from BPM, VAT and, if applicable, customs duties, for 10 years, starting from the date of employment in the Netherlands. This 10-year limit does not apply to higher ranking staff with AO status.

Exemption from BPM, VAT and (if applicable) customs duties for the purchase of new motor vehicles is always granted in advance with a form D39 on the condition that the vehicle is equipped with CD/CDJ/BN/GN registration plates. No refund of taxes is granted after the purchase has taken place. 

Taxes paid in connection with motor vehicles that have ordinary (Dutch) registration plates will not be refunded. Taxes paid on the purchase of second-hand motor vehicles are not eligible for refund either.

For both official and personal use, the exemption from BPM, VAT and, if applicable, customs duties,
ends when the motor vehicle is sold, leased, hired out, pledged or transferred free of charge or in return for payment. Using or allowing the motor vehicle to be used in a manner or for purposes not covered the exemption is prohibited. The taxes for which the exemption was granted are then due, calculated on the current value of the motor vehicle.

Please note that taxes already paid in connection with ordinary Dutch registration plates will not be refunded. No refund of paid taxes is granted after the purchase has taken place. Taxes paid on the purchase of second-hand motor vehicles are also not eligible for refund.

9.6.3    Car parts (official use and personal use with AD/AO status only)

If the exemption is granted for the purchase of a motor vehicle, the exemption is also granted for all parts required to operate the motor vehicle. The VAT exemption on the purchase of parts for maintenance or repair of a motor vehicle is only granted if the parts are intended for a motor vehicle with special registration plates. This means the invoices must always include the vehicle’s special registration number. Otherwise no refund can be granted.

9.6.4    VAT (official use and personal use with AD/AO status only) and excise duties on motor vehicle fuel

Exemption from excise duties on motor vehicle fuel is granted in respect of motor vehicles intended
for official use by the international organisation (i.e. official cars), and for personal use by
eligible staff. This exemption is granted only for motor vehicles with special registration plates. Administrative, technical and service staff with BO or EO status are exempt from excise duties
for 10 years from the date they take up employment in the Netherlands. This 10-year limit does not apply to higher ranking staff with AO status.

The exemption from excise duty (and VAT, if applicable) on motor vehicle fuel is granted in the form of a tax refund. In order to claim this refund, invoices must be submitted containing the vehicle’s special registration number, the number of litres of fuel purchased, the type of fuel purchased and the date of purchase. It is for this reason that a fuel card must be used. No refunds will be granted on petrol station receipts as these receipts do not meet the abovementioned requirements.

9.7 Energy tax

If an international organisation has been granted an exemption from VAT on the supply of natural gas or electricity intended for official use in the Netherlands, exemption from energy tax and the renewable energy and climate transition surcharge (energiebelasting en opslag duurzame energie- en klimaattransitie) is also granted. If the organisation is responsible for staff accommodation and the associated costs, these costs will also be considered to be costs relating to official use. Exemption from these taxes can be granted directly on the basis of the VAT Directive 2006/112/EC. A completed exemption certificate stating the contract number and address(es) to which the energy is supplied must be sent to Team IFB. Team IFB will authenticate the certificate and return it to the international organisation. In order to receive the direct exemption, international organisations must provide their supplier with the authenticated certificate. Instead of applying for direct exemption in advance, diplomatic missions also have the option of requesting a refund of taxes already paid. A request can be submitted using form OB 100 within three months of the end of the calendar quarter in which the date of the annual/final statement (jaarnota/eindafrekening) falls. The refund of taxes on the supply of natural gas and electricity is only granted on the basis of an annual or final statement and not on the basis of advance invoices (voorschotnota’s).

9.8     Municipal taxes

In the Netherlands, municipal authorities levy both taxes and charges for services rendered. International organisations and their staff members may be entitled to exemption from certain municipal taxes, depending on the headquarters agreement. This does not include exemption from charges for services rendered (see the following paragraphs). 

9.8.1     Taxes

Exemption is granted only from municipal taxes relating to the official activities of the international organisation and personal use by staff members including their dependants. The term ‘official activities’ includes providing accommodation for staff. Only staff who are neither Dutch nationals nor considered to be permanent residents of the Netherlands are eligible for exemption. 

Exemptions can be granted from the following municipal taxes:
• property tax on property occupied or owned by the international organisation or the head of an international organisation (onroerendezaakbelasting, OZB);
• municipal tax on second homes (forensenbelasting);
• dog licences (hondenbelasting);
• tax for installations on public land or water (precariobelasting).
  
If an assessment for municipal taxes is received despite an exemption, an objection can be lodged with the municipality within six weeks of the date of the assessment. The municipality can also be
contacted for any other questions about these taxes. Municipal taxes do not fall under Team IFB’s remit.

9.8.2 Charges for services rendered

It should be noted that no exemptions are granted on charges levied for specific services rendered. No exemption is therefore granted in respect of: administrative charges (leges), water treatment charges (zuiveringsheffing, see paragraph below), betterment levy (baatbelasting), sewerage charges (rioolheffing), waste disposal charges (afvalstoffenheffing), and waste collection charges (reinigingsrechten). An example of a betterment levy is a charge for the construction of a new sewerage system to which the property in question is connected. This is a municipal charge for a specific service rendered.

Water authority charges
Exemption from water authority charges may be granted if the headquarters agreement contains a provision to this effect. This does not apply to persons who are permanent residents of the Netherlands or have Dutch nationality.

•    Water authority charges paid by the owner of the premises (watersysteemheffing eigenaar): 
exemption is granted to the international organisation; exemption is also granted to the head of an international organisation, unless the property is a second home.
•    Water authority charges paid by the occupant (resident) (watersysteemheffing ingezetenen): 
exemption is granted to international organisations and their staff, unless they are permanently resident in the Netherlands or have Dutch nationality.
•    Water treatment charges, wastewater (zuiveringsheffing): the water authority tax for the treatment of wastewater (zuiveringsheffing) has to be paid by everyone residing in a particular district. Despite the wording, this levy is a charge – not a tax – for a specific service rendered. Hence there are no exemptions.

9.8.3 Supply of tap water

If an international organisation is exempted from VAT on the supply of tap water for official use, it is also exempted from tax on tap water for official purposes (belasting op leidingwater). Exemption from these taxes can be granted directly on the basis of VAT Directive 2006/112/EC. A completed certificate stating the contract number and address(es) to which the tap water is supplied must be sent to Team IFB. If the conditions are met, Team IFB will authenticate the certificate and return it to the international organisation. In order to receive the direct exemption, diplomatic missions or consular posts must provide their supplier with the authenticated certificate.

Instead of applying for direct exemption in advance, international organisations also have the option of requesting a refund of tax already paid. A request to this effect can be submitted together with the request for a VAT refund using an OB 100 form. The refund of taxes paid on the supply of tap water is only granted on the basis of an annual or final statement (jaarnota/eindafrekening) and not on the basis of advance invoices (voorschotnota’s). The deadline for submitting a refund request is within three months of the end of the calendar quarter in which the date of the annual/final statement falls.