VAT return for freelancers in the Netherlands: how it works

What do you declare?

In your return you enter the VAT you charged your customers, and the VAT your suppliers charged you (input VAT). You pay the difference or get it back.

You do not get an assessment: you transfer the amount to the Dutch Tax Administration (Belastingdienst) yourself. You also file a return if you charged or paid no VAT in a period, a nil return.

Which rates?

The standard rate is 21%. For some goods and services 9%, 0% or an exemption applies. If you charged different rates, you keep them separate in your records.

If your turnover is no more than €20,000 per calendar year, you can join the small businesses scheme (kleineondernemersregeling, KOR). You then charge no VAT, file no VAT return and cannot reclaim VAT on your costs.

Per quarter, month or year

Most businesses file every quarter. The letter you get after registering states which period applies to you. Monthly or yearly is possible on request, with a letter to your tax office.

Yearly is only possible if you meet all the conditions, including: you pay less than €1,883 VAT per year and you are a sole proprietorship or a partnership of natural persons only.

If you file or pay late, the Belastingdienst can require you to file every month.

When must it be in?

Per quarter or month: no later than the last day of the month after the quarter or month. Per year: before 1 April of the following year. Your return and your payment must both be in by then. An extension is only possible in case of a calamity.

What counts is when the Belastingdienst receives your return and when the amount is in its account. A bank transfer takes a few days. If you file with accounting software, you can send it from the 24th of the month before the end of the period; earlier gives an error message.

How do you file?

Online in Mijn Belastingdienst Zakelijk (the tax authority's business portal), where you log in with eHerkenning or DigiD. You can also file from your accounting software or through a tax service provider. As a starting business you sometimes first get a one-off paper return.

These points come up every time:

• All sales invoices of the period, per VAT rate. The invoice date determines which period the VAT belongs to.
• All purchase invoices received. You can only deduct VAT once you have the invoice.
• VAT on private use goes into the last return of the year.
• The payment reference and the deadline are in Mijn Belastingdienst Zakelijk and in your annual return letter.

Fixing a mistake

A mistake of up to €1,000 you process in your next return, in the box where the amount belongs. If it is more than €1,000, you send a correction form (suppletie) as soon as possible, in any case within 8 weeks after you discovered the mistake.

You can correct up to and including 5 years after the year of the return.