Advertising Tax: Who Qualifies and What You Get
Learn how the Advertising Tax works for shop owners in the Netherlands and what you need to know about signage costs.
The Advertising Tax is a local tax managed by the municipality that applies to business owners who display signage visible from public areas.
Who it's for
This scheme is for shop owners who use signage to promote their business to people passing by. If your business uses signs that can be seen from the street, you are required to participate. This includes various types of displays, such as "Gevelreclame" (signs attached to the building facade) or an "Uithangbord" (hanging signs).
What you get
By paying this tax, you receive the necessary permission to display your signage. This legal authorization allows you to use visual advertisements to promote your shop and attract customers from the street.
What it costs you
This is an annual tax that you must pay every year. The amount you are required to pay is determined by the size of the signage you display. Because the cost is based on the physical dimensions of your signs, larger displays will result in a higher annual tax amount.
The catch to know
A common mistake is thinking that only signs mounted on the outside of the building are subject to this tax. In reality, even signs placed inside your shop windows can be taxed if they are visible to people on the street. You should check your window displays to ensure they are accounted for.
How to apply
- Identify all signs used by your business, including those on the facade or hanging outside.
- Measure the size of every sign, including any advertisements placed inside your windows.
- Check with your local municipality (Gemeente) regarding the specific reporting requirements for your area.
- Follow the local authority's instructions to register your signage and pay the annual tax.