Net turnover (netto-omzet)
The income from the supply of goods and services from the normal conduct of business, less discounts and VAT. Net turnover is one of the three size criteria (art. 2:377(6) DCC).
What does net turnover mean?
The income from the supply of goods and services from the normal conduct of business, less discounts and VAT. Net turnover is one of the three size criteria (art. 2:377(6) DCC).
This concerns income from ordinary business activities after discounts and turnover tax. An incidental sale of a business asset is usually not net turnover. This distinction also affects the size class.
How does it work?
The law defines net turnover as the income from the supply of goods and services from the entity's business, less discounts and the like and less taxes levied on turnover (art. 2:377(6) DCC). VAT and excise duties therefore do not belong to it, nor do bonuses and payment discounts to customers. Amounts you collect on behalf of another are, according to RJ 270 (for micro and small entities RJk B13.110), not your own income.
When turnover is recognised is regulated by RJ 270: for goods, when the significant rights and risks have passed to the buyer; for services, in proportion to the performance delivered. A contract is, where necessary, split into separately identifiable components, so that each performance gets its own revenue moment (RJ 270; for micro and small entities RJk B13.101b). The invoice date and the payment date are not decisive.
Example
An installer (BV) invoices € 484.000 in 2026 including 21% VAT, so € 400.000 excluding. Of this, € 20.000 is a deposit for a project starting in 2027, and customers receive a € 6.000 turnover bonus afterwards. In December a further € 15.000 of work was completed that will only be invoiced in January. Net turnover 2026: 400.000 − 20.000 − 6.000 + 15.000 = € 389.000. The sale of an old van for € 8.000 does not count: that is not a supply from the ordinary business.
In the annual accounts
Profit and loss account; for micro and small entities often visible only in internal documents.
Difference from other operating income
Net turnover comes from the ordinary business activity: what the company does to earn money. Other operating income is income that stands apart from that, such as the book profit on a sold business asset or rent received for part of the premises. The distinction matters, because only net turnover counts for the size class.
Common mistakes
- Including VAT
- Booking an incidental gain as ordinary turnover
What to watch for
- Reconcile turnover with the VAT returns and explain the difference: exempt turnover, reverse-charged VAT, amounts invoiced in advance and still to be invoiced.
- Micro entities state net turnover in their own profit and loss account (art. 2:395a(5) DCC), but do not make it public.
- Small and medium-sized entities may combine it into the gross operating result (art. 2:396(4) DCC and art. 2:397(3) DCC); medium-sized entities do state the percentage change. Large entities split turnover by line of business and region (art. 2:380 DCC).
Legal basis and source
art. 2:377(6) DCC
Frequently asked questions
Is net turnover the same as profit?
No. Net turnover is the top line of the profit and loss account: income before deduction of all costs. Profit is what remains after purchases, wages, depreciation, interest and tax are deducted.
Does a deposit received count as turnover?
No, not as long as the performance has yet to be delivered. The deposit is a liability to the customer and becomes turnover when you deliver.
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Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
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