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.

Model agreement

Self-employed professionals and their client can decide, but are not obliged, to use a so-called model-agreement to establish an independent business relationship. However, the Dutch Tax and Customs Administration may check retrospectively if the type of relationship meant actual employment or not, even if this was not intended. If so, this may have consequences regarding additional payroll taxes for both self-employed professional and client.

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.