5 tips and tricks for the VAT declaration

Working as a FreeFlexer entails a certain independence. That's why it is important to take a moment to file your turnover tax return (or: VAT-declaration). You only have to file a turnover tax return if you don't make use of the Small Businesses Scheme (KOR). If you keep your administration in order during the year, it will be a piece of cake. We have highlighted a number of frequently asked questions and give you tips for saving money with your VAT return. Handy!

1. What is the difference between income tax and sales tax?

As a FreeFlexer, you pay tax on your income, just like everyone else who earns money in the Netherlands. This is called income tax. Income tax is a tax every FreeFlexer has to deal with. In addition to income tax, you may also have to declare VAT. You have to declare VAT if you have not registered for the Small Businesses Scheme (KOR). You then invoice VAT to your clients. Over that VAT that you receive as a freelancer, you file a sales tax declaration every quarter (also called VAT declaration).

Example

You earn €19 per hour excluding VAT. On top of this comes 21% VAT. The amount you receive is €22.99 per hour including VAT. You have to pay this 21% to the Tax Authorities. You can see it as money that never really belonged to you. That is why it's wise to put it aside.

Please note: have you registered for the Small Businesses Scheme (KOR)? Then you no longer need to file a VAT return from the moment the new quarter starts. Read here all about the KOR.

2. Does every FreeFlexer have to declare VAT?

No. FreeFlexers with a turnover of up to €20,000 in the Netherlands can opt to be exempt from the obligation to pay VAT as from 1 January 2020. This means that you do not have to invoice your clients for VAT and therefore do not have to pay turnover tax. If you want this exemption, you must register for the KOR with the Tax Authorities.

3. When do you have to file a VAT return?

You file a VAT return every quarter, so 4 times a year. You indicate online to the Tax Authorities how much VAT you have received and spent in the quarter concerned. You always submit the VAT return in the month after the quarter has ended. You therefore submit your VAT return for the first quarter of 2020 no later than 30 April 2020.

Find help with your VAT return.

4. Do I also have to declare VAT if I have had no income in the past quarter?

Yes. If you have not made any turnover in the past quarter, you must still submit a VAT return. It is possible that you have incurred expenses within your company on which you have paid VAT. Please note: a penalty of € 65 will be imposed when you forget to file your VAT return on time.

Tip: Check the Belastingdienst website to see which deductions there are. In some cases, you may have to pay less VAT.

5. What about tax and the first test job?

In consultation with the Tax Authorities, it is possible to work the first 3 shifts via the platform without a VAT number. No VAT will be invoiced on these first shifts. Therefore, you do not need to declare these shifts in your VAT return. The reason for this is that you are currently looking to see if freelancing is something for you and therefore you don't yet have the intention to become an entrepreneur. You do have to report this income in your income tax return .

6. Why can I, as a starting entrepreneur, not file a tax return via the digital portal of the Belastingdienst (Tax Authorities)?

For new entrepreneurs, the Belastingdienst sends the first VAT return digitally or by post. Is there no assignment ready in the digital portal of the Belastingdienst? Then check your mailbox.

Do you still have questions? We get it, tax is tough stuff. Ask your questions below or go to the website of the Belastingdienst.

No rights can be derived from this blog and this is not tax advice.

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