VAT return: How do I calculate what I need to declare?

It’s actually pretty simple: the Belastingdienst (Tax Administration) want to know how much you earned as a freelancer and how much VAT you collected on those earnings. You can then deduct the VAT you've already paid on your business expenses (incoming invoices).

Step 1: Download your invoices

Download all available invoices from your Financial overview that fall within the quarter you're filing for. Invoices must be included in your VAT return even if you haven't received payment for them yet. The Belastingdienst uses the invoice date, not the payment date.

Go to Financial Overview → Invoices and download both your:

• Sales invoices (M)
• Purchase invoices (F)
• Invoices from substitutes

Step 2: Calculate your income and collected VAT

You need to know:

• Your total income excluding VAT
• The total VAT you've received

Gather all your sales invoices (M). If VAT was charged on an invoice, you'll include it in your VAT return. Some invoices may show 0% VAT or reverse-charged VAT. These invoices should also be included in your VAT return, but declared separately in rubriek 1e.

For each invoice, note down:

• The amount excluding VAT (grondslag on invoice)
• The VAT amount

Substitution invoices: Make sure to include invoices for substitution shifts. If someone covered a shift for you through a substitution, you'll see two invoices in your Financial Overview:

• An invoice from you to the client (this counts as income and should be included in Step 2)
• An invoice from the substitute to you (this counts as an expense and should be included in Step 3)

Step 3: Calculate your expenses and paid VAT

You now need to know:

• Your total expenses excluding VAT
• The VAT you've paid on those expenses

Gather all your invoices from other flex workers for substitution shifts and purchase invoices (costs for DirectPay).

For each invoice, note down:

• The amount excluding VAT (grondslag on invoice)
• The VAT amount

Add everything together to calculate your total expenses excluding VAT and total expenses including VAT.

Step 4: Submit your VAT return

Once you've collected all the necessary amounts, you're ready to submit your VAT return. Follow the VAT return instructions provided by the Belastingdienst.