What are the taxes and benefits for self-employed (eenmanszaak)?

Tax Obligations as a Self-Employed Eenmanszaak
I. What are the tax obligations of the self-employed?

After registering as self-employed (eenmanszaak) or Vof (partnership) at the KVK, you will have two tax obligations:

a) Income tax return (March-April)

Check the following link: https://www.tax-in.com/en/incometax2023/

b) VAT Sales tax – BTW (January, April, July and October)

The VAT Sales tax (BTW) is a declaration that companies must file for VAT they have invoiced (BTW in Dutch). It is important to know on what dates it must be done because if they are not presented on time, the fines can exceed 5,514 euros for the self-employed (eenmanszaak) or a company (VOF):

• First Quarter (Q1-2024):
In April 2024, income and expense invoices with an issue date from January to March 2024 must be declared.

• Second Quarter(Q2-2024). 

In July 2024, income and expense invoices with an issue date from April to June 2024 must be declared. 

• Third Quarter (Q3-2024).

In October 2024, income and expense invoices with an issue date from July to September 2024 must be declared.

• Fourth Quarter (Q4-2024).

In January 2025, income and expense invoices with an issue date of October to December 2024 must be declared.

II. What deductions or tax benefits can I apply in the declarations as an self-employed (eenmanszaak or VoF)??

a) Self employment Benefit (zelfstandigenaftrek)

If you meet the following conditions, you can apply for said benefit:

You are an entrepreneur for income tax purposes. Whether or not you are depends entirely on your situation. You can check in the ‘Ondernemers Check’ if you are an entrepreneur for tax purposes at the following link: https://www.belastingdienst.nl/wps/wcm/connect/nl/ondernemers/content/hulpmiddel-checken-of-ik-ondernemer-ben-voor-de-inkomstenbelasting?cid=cpc:2023_3_55&gad_source=1&gclid=Cj0KCQjwvb-zBhCmARIsAAfUI2sSvZrUMMePpjoOllFo8w47K_Dv0HXz6ykn6hmW2LRf5HtsOc-duUAaAi67EALw_wcB

– Criterion of 1225 hours (urencriterium), if you are an entrepreneur who dedicates at least 1225 hours to their company in the calendar year.

We will give some examples below:

– If you registered your company on August 15, 2019, the criteria is the same, that is, from August 15 to December 31 you must do a minimum of 1225 hours to apply for the benefit.

– However, if you register your company on January 1, 2019, then you can accumulate the 1225 hours between January 1 and December 31, 2019, that is equivalent to 25 weekly hours invested in your company.

– If, in addition to having your own company, you work as an employee for another company, the 1,225-hour criterion only applies if you spend more than 50% of your time on your own company.

– To apply for this benefit, you must record all the time you dedicate to your company as time talking with clients, transportation to meet with your client, preparation of emails, promotions, phone calls with clients, trips, doing your administration, meetings, time to prepare the marketing of your company, etc. Sick and vacation hours do not count.

– In the event of an audit by the Dutch tax authorities (Belastingdienst), you must be able to prove that you have worked those hours for your company.

If you qualify, the self-employment allowance (zelfstandigenaftrek) deduction is as follows:

• In 2024: a maximum of 3,750 euros

• In 2023: a maximum of 5,030 euros

 Tax Obligations as a Self-Employed Eenmanszaak

b) Startup Benefits for Entrepreneurs (startersaftrek)

If you meet the following conditions you can apply for said benefit:

-You are entitled to the self-employed deduction.

-You have not been an entrepreneur for income tax purposes every year in the past 5 years.

-You have used the self-employed deduction a maximum of 2 times in the past 5 years.

If you qualify, the Startup Benefits for Entrepreneurs (StarterSaftrek) deduction is as follows:

In 2024: it is 2,123 euros

In 2023: also 2,123 euros

III. Do you have to make your first invoice? Do you know what information should be contained in company invoices?

If you buy goods or services in the Netherlands, you will receive an invoice from your supplier. This invoice must meet a number of requirements. Each bill you receive should include the following information:

 • Provider’s name and address.

• VAT identification number of the supplier.

• Invoice number

• Invoice date

• Date the goods or services were supplied

• Quantity and type of goods supplied

• Nature and type of services provided

Invoices must also include the following data for each VAT rate or exemption:

• Price per piece or unit, without VAT

• Any reduction that is not included in the price

• VAT rate that has been applied

• Cost (the price without VAT)

• In the case of an advance payment: the date of payment, if different from the date of the invoice

• The amount of VAT

• In some cases, your VAT identification number must also be included on the invoice. This is the case for the export of goods to other EU countries and for certain services involved, such as transport services. Your VAT identification number must also be included on the invoice in cases or reverse charges. 

IV.  Am I required as an entrepreneur to have a business bank account or can I use my personal account?

If you have registered a company (eenmanszaak or VoF), you are not required to open a business bank account, however it is advisable to have a business bank account, because it makes administration easier for you and the accountant when identifying expenses or income related to your business.

It also gives more security and formality for customers or suppliers who work with your company. Keep in mind that having a business bank account often has a monthly cost, some banks have business bank accounts with reduced bank charges for the first 2 years of registering the company.

V. Check VAT identification numbers (BTW nummer)

It is important that you know if your client is really an entrepreneur. This is because if your administration proves that your client is not an entrepreneur, you have to know how to handle the tax calculation.

Check the VAT identification number.

Do you want to check the tax identification number of your client?

Then go to the European Commission website. You can check the VAT identification numbers of your suppliers from all EU Member States at the following link. 

https://ec.europa.eu/taxation_customs/vies/

You can also check your dutch customers.

 Tax Obligations as a Self-Employed Eenmanszaak

Source : Belastingdienst