As of January 1, 2025, the Netherlands is implementing several legislative changes that will impact e-commerce businesses, including foreign entrepreneurs selling to Dutch consumers without a physical presence in the country. Understanding these developments is crucial for maintaining compliance and ensuring operational efficiency.
These regulations stem from the Dutch government’s commitment to environmental sustainability, fair taxation, and labor rights, aligning with broader EU directives. While a law may have a set implementation date, its practical application and enforcement can vary, leading to differences between the law’s official start and its real-world impact.
1. Zero-Emission Zones Implementation
Dutch municipalities are set to introduce zero-emission zones in urban areas, restricting access to only emission-free delivery vehicles. These cities include Amsterdam, Rotterdam, Utrecht, and The Hague, the 4 biggest cities of the Netherlands – 26 municipalities have planned the zero-emission zone in total. This initiative aims to reduce urban pollution and promote sustainable logistics.
Impact on Foreign E-commerce Businesses:
- Logistics Adaptation: If your business relies on local couriers for last-mile delivery, it’s essential to ensure they comply with zero-emission requirements in designated zones to prevent delivery disruptions.
- Sustainable Branding: Aligning with these environmental standards can enhance your brand’s reputation among eco-conscious Dutch consumers.
2. Adjustments to the Small Business Scheme (KOR)
The mandatory minimum application period of three years for the KOR is being abolished, and the registration threshold is increasing from €1,800 to €2,200. This scheme allows small businesses who are active in the EU to be exempt from charging VAT under certain conditions.
Impact on Foreign E-commerce Businesses:
- VAT Compliance: If your annual turnover in the Netherlands is below €2,200, you may qualify for VAT exemptions under the KOR. Assess your eligibility and consider the benefits of registration.
- Administrative Flexibility: The removal of the three-year commitment provides greater flexibility in opting in or out of the scheme based on your business needs.
3. Discontinuation of BPM Exemption for Commercial Vehicles
The entrepreneurs’ exemption from the Private Motor Vehicle and Motorcycle Tax (BPM) for new commercial vehicles is being discontinued for vehicles with a first registration date on or after January 1, 2025. An interim arrangement applies to vehicles registered before December 31, 2024.
Impact on Foreign E-commerce Businesses:
- Increased Costs: If your operations involve the use of commercial vehicles in the Netherlands, anticipate higher acquisition costs due to the BPM.
- Strategic Planning: Consider registering new vehicles before the end of 2024 to benefit from the existing exemption.
4. Increase in Statutory Minimum Wage
Effective January 1, 2025, the statutory minimum wage for full-time employees aged 21 and over is increasing to €14.06 per hour.
Impact on Foreign E-commerce Businesses:
- Labor Expenses: If you employ staff in the Netherlands, prepare for higher wage expenses in compliance with the new minimum wage standards.
- Budget Adjustments: Review and adjust your financial planning to accommodate the increased labor costs.
5. Resumption of VAT E-commerce Fines
The Dutch government has announced that administrative fines for non-payment or late payment of VAT on e-commerce transactions will resume starting January 1, 2025. This marks a return to stricter enforcement under the EU’s 2021 e-commerce VAT reforms.
Impact on Foreign E-commerce Businesses:
- Compliance Enforcement: Ensure timely and accurate VAT reporting to avoid penalties.
- Operational Vigilance: Implement robust accounting practices to maintain compliance with VAT obligations.
6. Anticipated Reduction in SME Profit Exemption
Pending approval, the Small and Medium-sized Enterprises (SME) profit exemption is expected to decrease to 12.7%, resulting in higher taxable profits for businesses.
Impact on Foreign E-commerce Businesses:
- Tax Liabilities: If your business structure qualifies for this exemption, anticipate an increase in taxable income and plan accordingly.
- Financial Strategy: Consult with a tax professional to understand the implications and explore potential tax planning strategies.
Always adapting
Staying informed about these legislative changes is essential for foreign e-commerce entrepreneurs operating in the Dutch market. Proactive adjustments to your business operations will ensure compliance and maintain smooth interactions with Dutch consumers.
Disclaimer: This article provides a general overview and is not a substitute for professional legal advice. For detailed information and guidance, consult with legal experts or refer to official Dutch government publications.
