The temporary crisis measure that allows entrepreneurs to file their VAT return quarterly instead of monthly has been extended up to and including 2011. This was decided by the outgoing Cabinet, on the recommendation of the outgoing Minister of Finance, Mr. De Jager.
Since July 1, 2009, entrepreneurs have been able to choose to file their VAT returns quarterly or monthly, as a temporary crisis measure. The underlying reason was that entrepreneurs who, on balance, owe VAT, could improve their liquidity position in this way. By filing and paying quarterly instead of monthly they defer payment of their VAT.
Originally, the temporary measure was to lapse at the end of 2010, but, given its success, it will be extended by one year. Figures from the Dutch Revenue show that increasing numbers of entrepreneurs prefer to pay their VAT quarterly. According to an announcement on the Ministry of Finance’s website, well over 100,000 entrepreneurs have switched to a quarterly return over the past 18 months.