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David VanAssche
The Setup TrapUpdated 2026-03-173 min read

eHerkenning & DigiD for Business

The digital access labyrinth that blocks your Dutch subsidiary from government portals for weeks

TL;DR
Without eHerkenning, your Dutch subsidiary cannot file tax returns, report sick employees, or access any government portal. Foreign directors face 3-6 weeks of identity verification delays -- during which BTW returns go unfiled and Belastingdienst correspondence piles up unread. The fix costs EUR 20-63/year; the bottleneck is time, not money.
The American Assumption
Setting up digital government access for your Dutch subsidiary is a quick administrative task.
The Dutch Reality
eHerkenning is the mandatory business authentication system for all Dutch government portals. Without it, you cannot file tax returns, report sick employees, or interact with any government agency online. Foreign directors face 3-6 weeks of verification delays.
The Consequence
During the eHerkenning setup delay, BTW returns cannot be filed, Belastingdienst correspondence cannot be viewed, and UWV reporting is blocked -- creating immediate compliance exposure.
3-6 weeks
Setup delay for foreign directors
Identity verification logistics with US-based directors create a structural bottleneck
EUR 20-63/yr
eHerkenning cost
Modest cost but severe time cost -- the bottleneck is verification, not price

eHerkenning is the mandatory business authentication system for accessing Dutch government portals. Without it, a Dutch subsidiary cannot file tax returns, report sick employees, modify its Chamber of Commerce registration, or interact with virtually any government agency online. The Belastingdienst requires EH3 level -- which demands verification of an original identity document via in-person meeting or video call, not just a scan.

Foreign directors face a structural bottleneck. The identity verification step requires a person authorized in the KVK registry to present original identification. For a US-based director, this means either flying to the Netherlands or completing a video identification session -- a single requirement that has delayed operations for countless US subsidiaries by weeks or months. During this period, BTW returns cannot be filed, Belastingdienst correspondence cannot be viewed, and UWV reporting is blocked.

Chain authorization (ketenmachtiging) is the standard solution: a Dutch tax advisor or payroll provider is authorized to act on the company's behalf using their own eHerkenning credential. The client company granting the authorization does not itself need eHerkenning -- the Belastingdienst has a form-based authorization process that bypasses eHerkenning entirely.

Cost is modest (EUR 41--63/year per EH3 credential, with a Belastingdienst-specific variant as low as EUR 20/year), but the time cost is severe -- 3--6 weeks for the verification logistics with foreign-based directors.

Assurance Levels

LevelIdentity VerificationTypical Use
EH2+Copy of identity documentLower-sensitivity services
EH3Original document via in-person or videoTax filings, UWV, most government services
EH4Mandatory face-to-faceHighest-sensitivity services

The Foreign Director Problem

NFC chip reading may not work with all passport/phone combinations. Video verification requires European business hours. The KVK registration must match. The standard solution is to register a local authorized representative and set up chain authorization for the tax advisor immediately after KVK registration.

Setup Guide

  1. Pre-incorporation: Decide on a local authorized representative, engage a Dutch tax advisor
  2. Days 1--3 after KVK registration: Submit eHerkenning application, set up chain authorization via Belastingdienst form-based process
  3. Days 3--14: Configure accounting software with SBR filing capability
  4. Days 7--21: Test portal access, verify chain authorization

Sources

eHerkenning requirements and provider offerings change periodically.

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