The small van struck concert-goers at the PinkPop music festival in Landgraaf - killing one person and critically injuring three.
In addition to the fatality there were also three people seriously injured.
The incident occurred at 4 a.m., four hours after Bruno Mars played to 70,000, police said.
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The incident casts a shadow on what had otherwise been a successful edition of Pinkpop, which is the longest continuously running rock/pop festival in the world, having taken place in the southern Netherlands since 1970.
The 35-year-old man who died in the incident was a festival volunteer, organisers said.
The 34-year-old man in is now in custody and is being held on suspicion of manslaughter and attempted manslaughter.
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The three-day concert is traditionally attended by tens of thousands of music fans and ended late Sunday with a performance by Bruno Mars.
"This investigation is still underway and we can not say whether this was something intentional or an accident", said police spokesman Hub Haenen. Pinkpop is held in Landgraaf, just five kilometers from the German border, and 20 kilometers from the Belgian border.
Militants have driven vehicles into crowds of people in attacks in London, Berlin, Barcelona and other European cities in recent years.
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Britain's Guardian newspaper quoted police as saying the crash happened on one of the two roads serving as exits from the festival grounds. A sold-out crowd came to see Pearl Jam, Foo Fighters, and others.