FREELANCING IN THE NETHERLANDS

WHAT TO KNOW WHEN FREELANCING IN THE NETHERLANDS

Freelancers often prefer their employment situation because of the flexibility and the opportunity to work for and from wherever they prefer. However, there are a few administrative requirements that you must keep in mind when working as a freelancer.

Before anything, make sure you have a valid residence permit which makes it possible for you to live and work in the Netherlands. Also, you must register your business with the Dutch Chamber of Commerce. Because being a freelancer is no official legal business form in the Netherlands, you must choose a legal form closest to your preferences. The most used business form is an eenmanszaak (sole trader, known as a one-person business). If you have investors or a bigger turnover, you might find the BV better suited for you.

VAT FOR FREELANCERS IN THE NETHERLANDS

When you register your business with the Dutch Chamber of Commerce (KvK), you will also be registered with the Dutch tax office, which automatically issues your company with a VAT number. In the Netherlands, most products and services are subject to VAT, which is generally 21%. However, there are some exemptions and lower VAT rates, such as 9% for specific goods and services.

For freelancers, there are a few key points to keep in mind regarding VAT:

• When invoicing your clients for your services or products, you must add 21% VAT on top of the regular price. Remember to set this money aside, as you will need to pay it to the tax office in the next (few) months.
• You are allowed to deduct VAT from business-related expenses, such as education, materials, and workspace costs.
• If you qualify for the Small Businesses Scheme (KOR) and your annual turnover is below €20,000, you may be exempt from charging and paying VAT.
• If you fail to submit your VAT return on time, you will receive a fine from the tax office.

ADMINISTRATION FOR FREELANCERS IN THE NETHERLANDS

Having your administration up to date is important for freelancers, as you are required to not just keep up with your invoices and bills, but you must also record the number of hours worked. Keeping track of your hours is important because it might make you eligible for tax breaks. From a minimum of 1.225 hours a year, you are eligible for the ‘zelfstandigenaftrek’.

Have Broadstreet help you with any administrative related matter. We have multiple years of experience in supporting freelancers with their administration and tax related matters.

FREQUENTLY ASKED QUESTIONS ABOUT FREELANCING IN THE NETHERLANDS

There are a lot of questions around freelancing in The Netherlands. At Broadstreet, we receive questions about this subject on a daily basis.  We have gathered the most frequently asked questions we have had the past couple of months.