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Sole proprietorships receive a new VAT number

Are you a sole proprietor?

Before 1 January 2020, all sole proprietorships in the Netherlands received a new VAT identification number for communication to customers and suppliers. This unique VAT number is an alternative for the old number, which contained the citizen service number (BSN). By using the new VAT number, the risk of identity fraud is reduced and privacy is strengthened.

This is the reason that, since January, sole proprietorships have two numbers:

  • a VAT identification number (VAT id, or btw-id)
  • a turnover tax number

The VAT identification number is the new number, which doesn’t contain the citizen service number. Entrepreneurs must use this number in contacts with customers and suppliers. The old number, based on the citizen service number, is to be used solely for communication with the Dutch Tax and Customs Administration. From 2020, this is known as the turnover tax number.

What does this mean for you?

From 1 January 2020, you are required to state the new VAT identification number (btw-id) of your sole proprietorship on your website. If your VAT id is not stated on your website, you run the risk of receiving a fine from the Dutch Authority for Consumers & Markets (ACM), that monitors this.

ACM Sole proprietorship new VAT number in 2020