Entrepreneur for the purposes of turnover tax

Self-employed professionals are almost always considered entrepreneurs for the purposes of turnover tax, which means that they must charge and pay VAT on their income. If your level of income is low, you may be eligible for the small businesses tax scheme (kleineondernemersregeling). In addition, some services (in journalism and education, for example) are exempt from VAT.

Entrepreneur for the purposes of income tax

Being considered an entrepreneur for the purposes of turnover tax does not mean that you will automatically be considered an entrepreneur for the purposes of income tax. The latter requires that you satisfy a number of conditions. If you do not fulfil these criteria and you are not employed by your customer, the Dutch Tax and Customs Administration regards your income as regular incidental earnings. In that case you are not entitled to claim certain tax deductions that are available to entrepreneurs. However, you may claim expenses related to your work.

Declaration of Independent Contractor Status (VAR)

If you would like to know how the Dutch Tax and Customs Administration categorises your income, submit a request for a Declaration of Independent Contractor Status (VAR). This document clearly states your status and obligations for you and your customer.

Tax facilities, subsidies and benefits

As a self-employed professional based in the Netherlands you can qualify for a number of benefits, tax facilities and subsidies.