The Dutch government introduced the Government Order (Overheidsvordering) at the end of 2009

Based on the Tax Collection Act (Invorderingswet on the collection of tax debts), banks must cooperate with the Government Order.

As the name indicates, the Government Order is a governmental instrument and not a payment product. This scheme can be used by various government authorities to collect claims (such as tax debts) if the debtor fails to pay his or her debt in spite of reminders and injunctions.

Features of the Government Order

  • It is a simplified electronic seizure on the banking assets, even the overdraft facilities, of a tax debtor's checking account.
  • The seizure does not apply to savings accounts or balances on credit cards and is not executed if the person concerned is in debt restructuring or has been declared bankrupt.
  • The Government Order was developed for the collection of small amounts (up to €500).
  • There is an objection procedure for possibly unjustified seizures.

More information on the Government Order can be found on the website of the Dutch Tax Office (Belastingdienst).

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