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, all products and services are filed with VAT, which is a standard of 21%. There are some exemptions to this 21% VAT.
For freelancers, there are a few things to keep in mind concerning VAT.
- When invoicing your clients for your services or products, you must add an additional 21% VAT on top of the regular price. Remember to set this money aside, as you will need to pay this to the tax office in the next (few) month.
- You are allowed to deduct the VAT from business-related expenses such as education, materials and even the costs for workspace
- When eligible for the small business scheme, when collecting under €1.883 VAT per year, you will pay less or no VAT at all for the Dutch tax office.
- If you do not submit the VAT declaration on time, you will receive a fine.