Automate VAT Returns with AI: Step-by-Step for Dutch Businesses

VAT in the Netherlands follows a simple core model: you charge VAT on sales (output VAT) and reclaim VAT on business purchases (input VAT or voorbelasting). Your VAT return reports both, and you pay (or receive back) the difference.

The VAT rates you will see most often

For most Dutch businesses, VAT preparation starts with the basic rates:

• 21% standard rate (most goods and services)


• 9% reduced rate (a defined set of goods and services)


• 0% zero rate for certain categories (for example some cross-border situations)

Invoice and evidence discipline

A VAT return is only as good as the underlying administration. The Belastingdienst can ask for evidence later, and Dutch businesses generally have a retention obligation of 7 years for administration (and longer in specific cases such as data related to immovable property).

Operationally, that means:

• You need a valid invoice for input VAT reclaim.


• You need consistency between what you charged on invoices and what you report.


• You need documentation for zero-rated or reverse-charge situations.

VAT gets tricky when you cross borders. A practical way to think about it is:

• Domestic NL sales: usually 21% or 9% VAT on invoices.


• EU B2B services or supplies: often reverse charge or zero-rated when conditions are met, and you may need to report in an EU listing (for example the ICP declaration) depending on the situation.


• EU B2C distance sales: thresholds and schemes like OSS can apply.


• Imports/exports outside the EU: customs and documentation come into play.

Reverse charge (verlegde btw)

Reverse charge is where VAT is shifted to the buyer in specific cases. In practice, the bookkeeping implication is: the VAT treatment is different even if the cash flow looks similar. Reverse charge shows up for many businesses via platforms and suppliers outside the Netherlands.

When we automate VAT prep, we treat reverse charge as a first-class classification. It is one of the most common places where manual bookkeeping goes wrong because the bank transaction alone does not explain the VAT rule.

Filing and deadlines (the operational reality)

Most Dutch businesses file VAT quarterly. The deadline is the last day of the month after the quarter ends. For example:

• Q1 (Jan–Mar): 30 April


• Q2 (Apr–Jun): 31 July


• Q3 (Jul–Sep): 31 October


• Q4 (Oct–Dec): 31 January

You submit digitally via Mijn Belastingdienst Zakelijk or through recognized accounting software, and you pay the amount due via bank transfer using the correct reference.

This overview is enough to understand the workflow. The next sections focus on what the AI needs in order to automate classification and prepare a return you can review with confidence.

Rubrics (rubrieken) and why they matter

The Dutch VAT return is not a free-form report. It is a form with rubrics (often referred to as 1a through 5d). Most small businesses mainly touch a subset:

• Rubriek 1a/1b: domestic turnover and VAT at the main rates (often 21% and 9%).


• Rubriek 4: reverse charge items (where you declare VAT due and potentially reclaim it).


• Rubriek 5a/5b/5c: totals: VAT due, input VAT, and the final payable or refundable amount.

Input VAT (voorbelasting) is evidence-driven

The rule of thumb is simple: if you want to reclaim VAT, you need a valid invoice and the cost must be business-related. A bank transaction alone is not enough. That is why receipt capture and invoice storage are part of the workflow, not an optional extra.

Practical cross-border checkpoints

If you sell or buy across the EU, you will see patterns that require extra reporting (for example EU B2B supplies and the ICP listing in some cases). The important part is not memorising every rule. The important part is ensuring your invoices and VAT numbers are stored so a specialist can review quickly if needed.

AI categorization is not magic. It is a combination of data extraction, pattern matching, and explicit rule checks.

At Virtual Outcomes, we treat VAT classification as a structured decision. The agent looks at multiple signals, not just a transaction description:

• Invoice data (if available): line items, VAT rate, VAT amount


• Vendor identity: known merchants and suppliers, recurring counterparties


• Country context: NL vs EU vs non-EU, VAT numbers when present


• Transaction type: sale, fee, payout, refund, chargeback


• Receipts and OCR: VAT rate printed on the receipt, mixed-rate splits

Most businesses pay the same vendors repeatedly: shipping providers, ad platforms, SaaS tools, office suppliers. Once you correctly classify a vendor once, it becomes a strong prior.

For example, if a business repeatedly receives payout settlements from a payment provider or marketplace, the agent learns the payout schema: what portion is revenue, what portion is fees, and how refunds show up.

Confidence scoring and review

We do not want a system that confidently does the wrong thing. We want a system that is explicit about uncertainty.

So each classification gets a confidence score, and we route low-confidence items into a review queue. The review queue is where humans add the final bit of domain context: “this vendor is actually a subcontractor,” or “this transaction includes both business and private use.”

In our bookkeeping agent work, we aim for 95%+ high-confidence classification on recurring patterns once the initial training period is done. The remaining 5% is where you earn the right to automate more by cleaning up data sources (better invoices, better product mappings, clearer payout exports).

VAT rate is often not the hard part

In practice, rate selection (21% vs 9%) is only one part of VAT prep. The harder part is treatment categories:

• Reverse charge vs domestic VAT


• Zero-rated exports vs exempt turnover


• Mixed private/business costs that require partial reclaim

A simple internal model we use

For every item, the agent produces:

• Category (revenue, cost, fee, refund)


• VAT treatment (domestic rate, reverse charge, zero-rated, exempt, out of scope)


• Evidence pointers (invoice ID, receipt image, payout statement line)


• Confidence score

Back-calculating VAT from gross amounts (when needed)

Sometimes you only have a gross (VAT-inclusive) amount in a bank transaction, especially for small expenses. The agent can still help by applying a mathematical check. For 21% VAT, the VAT component of a gross amount is gross × 21/121. For example, if you paid €121 including 21% VAT, the VAT portion is €21.

We do not treat that as final evidence, but it is a useful validation signal when combined with a receipt OCR result.

Reverse charge detection is pattern-based

A common Dutch business pattern is paying foreign software and advertising suppliers. Invoices may show 0% VAT with wording that indicates reverse charge. The agent flags these and proposes a reverse-charge treatment, but only marks it high confidence when it can link to the invoice and supplier country context.

Mixed-rate receipts and splits

Supermarkets, restaurants, and travel receipts can contain mixed VAT rates. The agent uses OCR to extract line items and proposes a split so you do not incorrectly reclaim input VAT at the wrong rate.

What we store for explainability

For every classification, we keep the minimal explanation needed for review:

• Which document supported the VAT rate (receipt/invoice)


• Which rule applied (domestic rate, reverse charge, exempt)


• Why confidence was high or low

Most Dutch businesses file VAT quarterly. Some file monthly.

Quarterly filing is common for ZZP’ers and smaller businesses because it reduces reporting overhead. Monthly filing is more common when transaction volume is high or when it improves cash flow (for example if you often receive VAT back).

Deadlines are always real

The operational rule stays the same: file and pay on time.

For quarterly filing, the deadlines are the last day of the month after the quarter ends (30 April, 31 July, 31 October, 31 January). For monthly filing, the deadline is the last day of the next month.

If you miss the deadline, the Belastingdienst can impose a verzuimboete. In many common first-time late-filing situations, this can be €68, and repeated late filing can increase the amount (for example to €136). For serious cases (intent or gross negligence), penalties can be much higher.

The point is not to scare you. The point is that a good system should make missing the deadline unlikely.

When we automate VAT prep, we treat deadlines as a product feature: reminders, quarter-to-date monitoring, and a “ready to file” checklist that forces missing items into view (missing invoices, unclear VAT treatment, unmatched refunds).

Late filing vs late payment (two different mistakes)

Dutch VAT operations have two separate failure modes:

• You file the return late.


• You file on time but pay late.

Cash-flow tip: reserve VAT as you go

If you invoice VAT-inclusive amounts, it helps to reserve the VAT portion so you are not surprised at the deadline. For 21% VAT, the VAT part of a gross payment is gross × 21/121.

Example: if you receive €12,500 including 21% VAT, the VAT portion is €12,500 × 21/121 = €2,168.70. Setting that aside weekly turns VAT into a non-event.

Why monthly filing can be useful

If you often receive VAT back (for example due to investments or high input VAT), monthly filing can improve cash flow. Some higher-volume businesses are assigned to a monthly period by the Belastingdienst. The workflow remains the same; the cadence changes.

Below is the practical workflow we use to automate VAT preparation. The exact UI differs per setup, but the steps are stable.

Step 1: Connect your source data

Start with the sources that create your VAT reality:

• Bank feed (read-only via PSD2 when possible, or CSV upload)


• Invoicing tool exports (sales invoices)


• Receipt capture for purchase invoices and expenses


• Optional: payment provider and marketplace settlement exports

Step 2: Set your VAT profile

The agent needs the basic context:

• Your business VAT number


• Filing frequency (quarterly or monthly)


• Whether you use KOR


• Whether you do cross-border sales (EU/non-EU)

Step 3: Import and normalize invoices

We ingest invoice data into a consistent schema: invoice date, supplier/customer, net amount, VAT amount, VAT rate, and a link to the PDF. If your invoices include mixed rates, we keep line-level data.

Step 4: Categorize transactions continuously

The agent runs daily (or more often) and categorizes new items. It uses counterparty learning and receipt OCR. Every item gets a VAT treatment and a confidence score.

Step 5: Review low-confidence items weekly

Do not wait for the deadline. A weekly review cadence keeps the quarter clean.

Typical low-confidence items:

• Mixed private/business expenses


• New suppliers


• Cross-border invoices with unclear VAT wording


• Marketplace settlement lines that need mapping

For e-commerce and subscription businesses, reconciliation is where VAT errors often hide.

We match:

• Refunds to original sales


• Fees to the correct expense category


• Net payouts to gross sales + fees + refunds

Step 7: Generate the VAT overview (quarter-to-date)

At any point, you can generate a quarter-to-date VAT overview. It shows:

• Output VAT by rate


• Input VAT (voorbelasting) with evidence links


• Reverse charge items (where applicable)


• A draft payable/receivable position

Dutch VAT returns are structured into rubrics (rubrieken). A practical subset most businesses recognize:

• Domestic turnover at 21% and 9%


• EU supplies/services where rules require separate reporting


• Reverse charge items


• Total VAT due (output) and total input VAT reclaim

Step 9: Run a pre-filing checklist

Before you submit, we run checks:

• Missing invoices/receipts for large input VAT claims


• Unusual rate changes compared to last quarter


• New cross-border patterns


• Duplicate refunds


• Large private-use risks

Today, the final submission step is typically still done via Mijn Belastingdienst Zakelijk (eHerkenning or DigiD) or via recognized bookkeeping software.

We prepare the numbers, the evidence exports, and the payment reminder. You submit, receive confirmation, and pay the amount due.

A concrete numeric example (so the workflow is not abstract)

Suppose you billed €12,500 (excl. VAT) at 21% in a quarter. Output VAT is €2,625. Suppose you have €600 in reclaimable input VAT. Then the draft position is €2,025 payable. The value of automation is not the subtraction. The value is that every one of those numbers can be traced back to invoices and receipts, and low-confidence items were reviewed before the deadline.

Step 0 (optional but powerful): separate business and private flows

VAT automation becomes much easier when your bank feed is mostly business. If you can, keep a dedicated business bank account and card. Mixed private/business spending is one of the main causes of low-confidence items.

Add-on: handling EU B2B and ICP reporting

If you provide services or goods to EU VAT-registered businesses, you may need additional reporting (for example the ICP listing) depending on the situation. In a Fiscal Agent setup, we store customer VAT numbers and invoice metadata so those reports can be produced or reviewed without digging through emails.

Rubric mapping is explicit

When we say “map to rubrics,” we mean the agent produces a table like:

• Turnover at 21% → rubric 1a + VAT due


• Turnover at 9% → rubric 1b + VAT due


• Reverse charge purchases/services → rubric 4a/4b (as applicable) + potential reclaim


• Input VAT on costs → rubric 5b

Practical output formats

At the end of the workflow, we deliver:

• A rubric summary for copy/paste into the portal


• A drill-down export (CSV) of items behind each number


• Evidence links (invoice PDFs and receipts)

Automation without verification is how you create risk.

We treat VAT preparation as a controlled system:

• The agent proposes classifications.


• Humans review the uncertain items.


• The system learns from corrections.


• The final VAT overview includes evidence.

A good review flow shows you only what you need to decide:

• Transaction/invoice context


• Suggested category and VAT treatment


• Confidence score and why it is low


• Evidence links (invoice PDF, receipt image)

Sampling even when things look good

Even with high confidence, we recommend sampling. For example, randomly review 20 items per month, and always review large items. This is how you catch drift early (a supplier changed invoicing format, a marketplace changed settlement files).

Audit trail as a product feature

When the agent changes a classification, we log:

• What changed


• When it changed


• Why it changed (rule or correction)

This is also what makes the agent useful for accountants: instead of a vague “AI did it,” you can provide exports and evidence links.

Period correctness (quarter boundaries)

One of the easiest ways to introduce mistakes is mixing periods. The agent can flag invoices that fall near quarter boundaries and ask you to confirm whether they belong in the current period.

We also flag “late receipts”: costs paid this quarter but invoiced earlier, or the other way around. This is where humans apply the correct accounting policy, but the agent makes the edge cases visible.

Large-item review is non-negotiable

Even if you trust automation, you should always review large items. A single €10,000 expense with 21% VAT represents €1,735.54 of VAT (10,000 × 21/121 if gross). Large items deserve a receipt check.

Control: who can change what

In teams, we set simple roles: the agent proposes, an operator reviews, and a finance owner approves changes to VAT rules. This prevents accidental drift when multiple people touch the books.

These controls are why automation stays safe as you scale.

KOR is one of the most misunderstood parts of Dutch VAT, because it changes your workflow, not just your tax.

The threshold

KOR is an optional small business scheme with a turnover threshold of €20,000 per calendar year. If you opt into KOR, you generally:

• Do not charge VAT on invoices


• Do not file periodic VAT returns for the period you are in the scheme


• Cannot reclaim input VAT in the same way

Automation implication: you must track turnover

KOR is not “set and forget.” If you are close to the threshold, you want warnings early.

A VAT agent is useful here because it tracks turnover continuously. Instead of discovering in December that you crossed €20,000, you see the trajectory in October.

Enrollment timing and operational planning

In practice, KOR enrollment has timing rules (you typically register before a period starts), and you should plan for what happens if you exit the scheme later. We do not treat KOR as a generic toggle; we treat it as a workflow state with consequences.

EU small business changes (high level)

From 2025, EU rules introduce additional options for small businesses operating across borders. The details depend on your situation and require careful interpretation, but the practical takeaway is: if you sell cross-border and you are near thresholds, you want continuous monitoring and clear records.

Our approach is to track the numbers and flag risks early. Strategic choices still belong with you and, for complex cases, your tax advisor.

A quick numeric intuition

KOR looks attractive when your customers are consumers, because you can invoice without VAT. But the trade-off is that you lose input VAT reclaim.

Example: suppose you do €18,000 turnover and you buy €5,000 of goods and services with 21% VAT. The input VAT on that spend is €867.77 (5,000 × 21/121 if gross). Under KOR, you generally cannot reclaim that, so the “benefit” of not charging VAT can be offset by the lost reclaim.

This is why we treat KOR as a decision, not a default.

Enrollment timing and state changes

KOR is opt-in. In practice, you register via Mijn Belastingdienst Zakelijk and the scheme starts on the first day of a new period (often a quarter) after registration. If you plan to enroll, you want to do it before the period starts.

The agent helps by tracking turnover and warning you when you are approaching €20,000, so you do not stumble over the threshold unexpectedly.

VAT mistakes are repetitive. That is good news, because repetitive mistakes are exactly what agents can detect.

Here are the most common issues we flag in automated VAT prep:

1. Wrong rate applied: a recurring item booked at 9% when it should be 21%, or vice versa.


2. Missing receipts for input VAT: the transaction exists, but the invoice/receipt evidence is missing.


3. Mixed private/business costs: a phone plan or car expense booked as 100% business without justification.


4. Reverse charge missed: an EU supplier invoice treated as domestic VAT when it should be reverse charge.


5. Zero-rate without documentation: zero-rated treatment used without the required evidence.


6. Refunds not matched to sales: revenue and VAT are overstated because refunds are booked separately.


7. Net booking of payouts: only the net payout is booked, hiding fees and distorting margins.

We also catch timing mistakes: transactions that landed in the wrong quarter because the invoice date and payment date were mixed.

These are not theoretical. They are the real reasons VAT prep becomes stressful in the last week of the quarter.

More real-world examples

• Foreign SaaS invoices: an invoice from a foreign supplier shows 0% VAT, but reverse charge should be declared. The agent flags it and asks for invoice confirmation.


• Car and travel mixed use: VAT reclaimed at 100% when the asset is partly private. The agent forces a percentage confirmation.


• E-commerce settlements: marketplace payouts booked as one net number, hiding commissions and refunds. The agent splits the settlement into components.


• Incorrect evidence for input VAT: a receipt photo without vendor details, or a missing invoice number. The agent marks it as not-ready-for-reclaim.

We also compare quarters. If your input VAT doubles but your costs did not, or if your reverse-charge items suddenly disappear, it is a signal to review. Humans are good at judgement; agents are good at noticing these deltas early.

In the Netherlands, VAT submission is digital.

Today, there are two common approaches:

1. Submit via Mijn Belastingdienst Zakelijk.


2. Submit via recognized bookkeeping software that supports VAT filing.

What we automate vs what you do

• We prepare: classifications, VAT overview, rubric summary, supporting export.


• You submit: login, enter or import the amounts, confirm, and pay.

Businesses commonly use eHerkenning for Mijn Belastingdienst Zakelijk. In some cases, DigiD can be used as well. The exact access method depends on your legal form and current Belastingdienst setup.

Payment discipline

If you need to pay VAT, you pay by bank transfer. The practical detail that saves problems: always include the correct reference (your VAT number and period) so the payment is matched correctly.

Future: API-based filing

Direct submission APIs exist in the broader ecosystem via software providers. We expect more direct integrations over time. But even when submission becomes automated, the control principles stay the same: review, logs, and the ability to stop automation when something is off.

A concrete portal workflow

When you submit via Mijn Belastingdienst Zakelijk, the steps are usually:

1. Log in (commonly with eHerkenning; in some cases DigiD is possible depending on setup).


2. Go to VAT (BTW) and select the period.


3. Enter the rubric amounts (our agent export is designed to match this structure).


4. Confirm and submit.


5. Save the confirmation for your records and pay on time.

Even if you automate everything else, the final submission is a governance checkpoint. It is the moment you confirm that the exceptions were reviewed and the numbers make sense.

If you file via recognized software, the same principle applies: review, then submit.

Quarterly filing is repetitive, but year-end is where you want to zoom out and check consistency.

What year-end reconciliation means in practice

• Do quarterly VAT totals reconcile with your annual revenue reports?


• Are refunds and chargebacks properly matched?


• Did any cross-border patterns change mid-year?


• Are you missing receipts for input VAT claims?

If you discover an error after filing, you correct it. In the Netherlands this is often done via a VAT correction/suppletie process depending on the situation.

The operational lesson is simple: catch errors early. A continuous system reduces the chance of big corrections, because you do not discover problems three months late.

Keep the evidence accessible

Year-end work is easier when every number has a trail: invoice PDFs, payout statements, and a classification log. This is why we structure the agent output as drill-down reports rather than a single “VAT due” number.

A good VAT automation setup does not just make filing faster. It makes your business easier to run because you always know where you stand.

Suppletie and the €1,000 practical rule

If you find an error after filing, you correct it. In many Dutch workflows, if the correction is small (for example under €1,000), it can be processed in the next regular return. For larger corrections, you typically submit a separate suppletie via Mijn Belastingdienst Zakelijk.

The point for automation is: keep the deltas small by catching issues weekly. A continuous system makes year-end reconciliation calmer because you are not discovering missing invoices from six months ago.

Five-year reality

The Belastingdienst can often correct and request information years later. Keeping an audit-ready trail (documents + classifications + logs) is not overengineering. It is what turns “we think we did it right” into “here is the evidence.”