---
title: "What is BTW?"
term: "BTW"
description: "BTW is Dutch value-added tax (VAT) charged on many goods and services; it is separate from Box 1 income tax on salary."
date: 2026-08-02T00:00:00.000Z
lastVerified: 2026-08-02T00:00:00.000Z
source: https://dutchtaxcalculator.nl/glossary/btw
---

# What is BTW?

> BTW is Dutch value-added tax (VAT) charged on many goods and services; it is separate from Box 1 income tax on salary.

Dutch term: _btw_

Employees usually see BTW on purchases, not on their payslip income tax. VAT refund procedures are a different route from payroll tax.

## FAQ

### What is BTW in simple terms?

BTW is Dutch value-added tax (VAT) charged on many goods and services; it is separate from Box 1 income tax on salary.

### Is this personal tax advice?

No. These pages are educational estimates. Use your payslip, assessment, employer, Belastingdienst guidance, or a qualified adviser for personal decisions.


## Sources

- [Belastingdienst: income-tax rates and credits](https://www.belastingdienst.nl/wps/wcm/connect/nl/werk-en-inkomen/content/hoeveel-inkomstenbelasting-betalen)

---
Source: https://dutchtaxcalculator.nl/glossary/btw