New BTW (VAT)-id number for entrepreneurs to replace the VAT-number on the invoice
In July 2019 after an investigation, a decision was made that the current BTW (VAT)-number for self-employed professionals and sole proprietorships are a risk regarding identity fraud. The current BTW-number contains the BSN (social security) number of the entrepreneur. The BSN number is a personal identification number that mainly serves as a reference between citizen and government. Because of the strict GDPR regulation, secretary of state Snel decided that an alternative must be found.
That alternative has now been found. Entrepreneurs will receive their new BTW-number in the autumn of 2019.
Implementation January 1st, 2019
The new BTW-id is a response to the European GDPR legislation that has gone into force in 2018. The GDPR has as its main purpose the better protection of European citizens with one overarching European legislation. The Dutch Authority of Personal Information (AP) has decided that a BSN-number that has to be made public on the invoices of certain entrepreneurs does not comply with the GDPR-legislation.
Secretary of State Snel launched an investigation in July 2019 in search of other alternatives. In October it was made public that the new alternative would no longer contain the BSN-number of the entrepreneur. In the autumn of 2019 entrepreneurs will receive a letter with their new BTW-id. They will need to apply this new BTW-id from the 1st of January 2020 on their invoices and administration. The BTW-number for referral with the Tax Authorities will remain the same as well as the BTW-number used for tax declarations.
BTW-id replaces the BTW-number on the sales invoice
The new BTW-id will no longer contain the BSN-number of the entrepreneur. A different, random, 9-digit verification number will be its replacement. This new ruling will only apply to entrepreneurs with a sole proprietorship. This is because they are the group that currently have a BTW-number with their BSN-number. This ruling is not applicable, therefore, for entrepreneurs with a B.V or VOF.
A self-employed professional or a sole proprietor will need to make some changes in their administration. The invoicing will need to be adjusted with the new BTW-id and also on their website the correct, new, number will need to be used.
For whom is this important?
It is the responsibility of the entrepreneur to adjust their administration so all the invoices will contain the new BTW-id starting January 2020. Suppliers that the entrepreneur in question uses will also need to change their invoicing with the new number and use for the declaration intra-community performances. (ICP).
Pay attention: if the entrepreneur receives an invoice from the supplier in 2020, originating from 2019 with the old BTW-number, then no new invoices will need to be requested with the new BTW-id number.
A summary
What?
A new BTW-number called the BTW-id without the BSN-number of the entrepreneur. With the purpose of replacing the BTW-number on the invoice.
For whom?
Currently the BTW-number of a sole proprietor or self-employed professional contains their BSN-number (social security). They will receive a new BTW-id.
When?
You will receive your BTW-id in the autumn of 2019 and will go into force January 1st, 2020.
What do I need to do?
You will need to adjust your invoicing and administration accordingly.
What should I give to Lupacompany?
You will only need to give your new BTW-id number to us. You will need to change the old BTW-number into the new BTW-id number.
Does this also apply to my payroll tax number?
No, the payroll tax number will not change because it does need to be on your invoices.
What do I use the BTW-number for?
The BTW-number, with your BSN-number, is used for your BTW-return. Your current BTW-number will be called revenue tax number (omzetbelasting(aangifte)nummer). This will also be the number you use when communicating to the Tax Authorities.
What should I do with my suppliers?
Check your invoices and make sure the BTW-id is added accordingly. This number is very important in construction and for performances to/from other EU-countries.
Make sure other parties are aware of your adjusted number.
Other EU-countries are not aware of this change. However, if they do not change it on their reporting, it can lead to problems.
What will that number look like?
Your BTW-id consist of a total of 14 characters. Namely the country code ‘NL’, 9 numbers, the letter ‘B’ and a verification number. Example of the new number: NL000099998B57.