BTW-ID number in the Netherlands. Why it matters?

Many entrepreneurs have been running their business in the Netherlands for years but still have doubts about their VAT number. In this article, we explain the difference between the OB number and the BTW-ID, why you must not use the OB number with clients, what can happen if your VAT number is wrong on an invoice, and how to make sure your BTW-ID is not cancelled by the Belastingdienst.

OB-nummer and BTW-ID – what’s the difference?

Until 2020, Dutch entrepreneurs used one VAT number that contained their BSN (citizen service number). This was the OB number (omzetbelastingnummer). Over time, it was considered unsafe for privacy reasons. That is why, from January 2020, two separate numbers were introduced:

• OB-nummer – used only for communication with the Belastingdienst. You must never put it on your invoices or give it to clients.
• BTW-ID – your public VAT number, which appears on invoices and is shared with clients and business partners, especially when you work internationally.

How to check if your BTW-ID is correct?

In the eFaktura.nl system, we have integrated the VIES database. This means your client’s VAT number is automatically checked when you add them. If the number is incorrect, you will see an error message. This can happen when:

• The number has a typo or is entered incorrectly.
• The client gave you their old VAT number containing a BSN (the former OB-nummer).
• The number is no longer active in the VIES system.

In such cases, you should:

• Contact the client and ask for the correct VAT number.
• Additionally, check the number yourself using the VIES search tool HERE.

Why you should never issue an invoice with an incorrect VAT number?

Issuing an invoice with an incorrect, non-existent or inactive VAT number can have serious consequences — for both your client and you as the issuer.

For your client (the invoice recipient):

• They cannot deduct the VAT if the number is incorrect or not registered in VIES.
• The Belastingdienst may reject their right to deduct VAT during a tax audit.

For you (the issuer):

• You may be required to correct the invoice and send it again, which delays payment.
• In the event of an audit, you could be held liable for tax, especially if you knew the VAT number was inactive.
• If you knowingly work with an inactive or fake entity, you risk more serious consequences, including being accused of participating in VAT fraud (such as a VAT carousel).

To avoid such problems, always check your client’s VAT number before issuing an invoice. eFaktura.nl will do this automatically for you.

Check how reverse charge works HERE.

When can the Belastingdienst cancel your BTW-ID?

A Dutch BTW-ID can be cancelled if:

• You do not submit VAT returns for 12 months.
• You have long-term overdue VAT payments.
• Your company does not carry out real business activity (no income, no clients, no invoices).
• In your returns, the tax office finds irregularities or false information.

Usually, the Belastingdienst will send you warnings before removing the number. If you do not respond, your VAT number can be cancelled automatically.

How to keep your BTW-ID active – checklist

• Submit your VAT returns on time.
• Pay your VAT on time.
• Run real business activities.
• Stay in touch with the Belastingdienst — read their letters and respond to requests.
• Report any changes in your business to the KvK and Belastingdienst.

Final tip

Your BTW-ID is not just a formality. It is the foundation for running a legal and safe business in the Netherlands and the EU. Check it regularly when doing transactions and do not risk unnecessary tax problems.