VAT in the Netherlands
Téma indítója: ArelTranslation

ArelTranslation
Hollandia
Local time: 21:00
angol - olasz
Apr 16, 2015

Hi everybody!

I'd like to work as freelance translator and, as many of you of course, I find myself facing with VAT matters. I just moved to the Netherlands and I don't know how the things run here about taxes, income and so on. I've red most of the forum and the Belastingdienst papers and I found an expat paper for entrepreneurs and freelance, but I have some questions about some practical matters.
I just started and I don't have clients and a minimum income yet. So, is it po
... See more
Hi everybody!

I'd like to work as freelance translator and, as many of you of course, I find myself facing with VAT matters. I just moved to the Netherlands and I don't know how the things run here about taxes, income and so on. I've red most of the forum and the Belastingdienst papers and I found an expat paper for entrepreneurs and freelance, but I have some questions about some practical matters.
I just started and I don't have clients and a minimum income yet. So, is it possible to submit for VAT number before start working as freelance translator? There are some kind of fixed taxes I must pay, in addition to the taxes on my real income?
If some of you have information about what to do exactly in my situation, I would be grateful!
Obviously I know that I'll have to consult a a business consultant sooner or later, but I want to be as informed as possible before.

Thank you to everybody!
Have a nice day.
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Sheila Wilson  Identity Verified
Spanyolország
Local time: 20:00
Tag (2007 óta)
angol
+ ...
Repost? Apr 18, 2015

I see you've had no response and I recommend you repost not as off-topic but as money matters or doing business or in the NL-specific forum if there is one. Many people exclude off-topic threads as they are usually just chat.

I did live in Den Haag for a few years but not self-employed so I'm afraid I can't be more helpful.


 

Meyers (X)
Local time: 21:00
angol - holland
Netherlands - VAT, income tax, ZVW Apr 19, 2015

Hi ELiz,
Welcome to the Netherlands.

(btw, Do you plan to work only as a self-employed translator, or also have another job with salary?)

Of course you can request a VAT number also before starting out. It's better to show potential clients you have a registered company.

First go to the nearest Chamber of Commerce (www.kvk.nl) and register your sole-proprietorship (eenmansza
... See more
Hi ELiz,
Welcome to the Netherlands.

(btw, Do you plan to work only as a self-employed translator, or also have another job with salary?)

Of course you can request a VAT number also before starting out. It's better to show potential clients you have a registered company.

First go to the nearest Chamber of Commerce (www.kvk.nl) and register your sole-proprietorship (eenmanszaak) with a good company name (can be your own name).
Say you also want to request a VAT number.
You have to give an estimate of your income for the first year. Just say something like Euro 10.000-15.000, and that you expect work from about 10 clients.
Immediately they give you a registration number of the KvK, and they send your details to the Belastingdienst, who will send you your VAT number.
Ready to start.

1) In January-March next year you have to fill in your VAT form, including the ICE form with VAT details of your European clients.
The first 1300 euro vat you don't have to pay (but will be added to your profit) and between 1300 and 1800 euro you pay only a percentage).
If you work mainly for translation agencies outside the Netherlands, you don't charge and don't pay vat anyway, so there's a good change you stay under the 1800 euro. You only charge vat to Dutch clients and European clients without a vat number

2) Then there is the Income Tax (IB) which you have to do by April 1.
If you don't have any other income such as job with salary, and you can prove you have worked more than 1225 hours per year on your sole-proprietorship, usually you don't pay income taxes over the first 19.000 euro profit. (make an Excel sheet with all the hours worked, including administration, marketing, etc.).
If you work less than 1225 hours per year, then usually you don't pay income taxes over the first 9.000 euro profit.

3) Then there is ZVW (health insurance taxes), about 5% of your profit (maybe 11% in 2015).
This you have to pay no matter how low your income is in the first year.
(ZVW is same form as IB, before April 1)

Good luck!!
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ArelTranslation
Hollandia
Local time: 21:00
angol - olasz
TÉMAINDÍTÓ
Thank you!! Apr 19, 2015

Thank you Meyers,
you've been very kind and clear!!
To answer to your first question, for now I don't have any other income, such as job with salary. Having no clients and income at all, I didn't know where to begin, and I wanted to be as professional and reliable as possible.
Thank you again for you explanations.
Have a nice week end!


[Edited at 2015-04-19 11:21 GMT]


 

Samuel Murray  Identity Verified
Hollandia
Local time: 21:00
Tag (2006 óta)
angol - afrikaans
+ ...
@Eliz Apr 19, 2015

Eliz_ wrote:
So, is it possible to submit for VAT number before start working as freelance translator?


Yes, it is encouraged, in fact. Simply register your business at the chamber of commerce (KvK), and they'll issue the VAT number for you.

There are some kind of fixed taxes I must pay, in addition to the taxes on my real income?


Well, as far as I know, you have to submit only types of tax documents, namely your VAT returns and your personal income tax returns. There is more than two types of tax that are based on your income, but they are all calculated based on these two submissions, and you'll receive the appropriate bills from the tax people.

[Added: Meyers mentions the ICE, which I included in the VAT submission, but it is strictly speaking a separate submission, that you do at the same time as you do your VAT submission.]

Obviously I know that I'll have to consult a a business consultant sooner or later...


Are you sure? What good is a business consultant?



[Edited at 2015-04-19 15:31 GMT]


 

ArelTranslation
Hollandia
Local time: 21:00
angol - olasz
TÉMAINDÍTÓ
@Samuel Apr 19, 2015

Thank you for your answer Samuel,

My concerns were about the fact that I don't know how much my eventual income would be, if I will have one soon, for the fact that I just starting my freelance activity. I was afraid I could't afford fixed taxes to pay, but as you and Meyers are tellin' me, I will have to pay only based on my income so it will be good to got registered and start to work as soon as I can!!


What good is a business consultant?


I was thinking about consulting one for having more details and be sure of my steps. I think I could use one at the moment of filling my taxes returns.


 

Meta Arkadia
Local time: 02:00
angol - indonéz
+ ...
Go to the enemy first Apr 20, 2015

Eliz_ wrote:
I was thinking about consulting one for having more details and be sure of my steps

Go to the tax authorities first. Most entrepreneurs see them as "the enemy," but in fact they are extremely helpful, probably because they are happy at least you don't see them as such (not yet anyway). The advantages of seeing them first are obvious: It won't cost you a penny, and if you're happy with their advice, they'll have to stick to it. You can't possibly get into trouble with them if you do what they say. You'll be "sure of my steps" to quote you.
If you're not happy with their advice, you can see a tax consultant. I think this will only be a good move if things are terribly complicated.

Cheers,

Hans


P.L.F. Persio
 

P_A_Y_X
Egyesült Államok
Local time: 12:00
Új felhasználó
angol - orosz
+ ...
VAT in NL for freelancers? May 2

Hi, I'm considering settling down as a freelance linguist in the Netherlands by taking advantage of the Dutch-American Friendship Treaty. As of now, I'm working EXCLUSIVELY with a US-based translation agency and, obviously, know nothing about VAT. My question is, will I be able to continue working with the same US-based agency in the Netherlands without charging/paying VAT considering the fact that none of my clients are NL/EU companies? Thank you!

[Edited at 2021-05-02 21:42 GMT]


 

Anton Konashenok  Identity Verified
Csehország
Local time: 21:00
orosz - angol
+ ...
P_A_Y_X: yes May 2

will I be able to continue working with the same US-based agency in the Netherlands without charging/paying VAT considering the fact that none of my clients are NL/EU companies?

Yes - since your client is outside the EU, your dealings have nothing whatsoever to do with VAT. Even if it were in the EU but outside NL, you would normally apply the so-called reverse charge mechanism (the VAT being payable on the client side).

[Edited at 2021-05-02 10:08 GMT]


P_A_Y_X
 

Samuel Murray  Identity Verified
Hollandia
Local time: 21:00
Tag (2006 óta)
angol - afrikaans
+ ...
@Payx May 2

P_A_Y_X wrote:
(1.) Will I be able to continue working with the same US-based agency in the Netherlands without charging/paying VAT, (2.) considering the fact that none of my clients are NL/EU companies?


Yes and no. The fact that none of your clients are NL/EU companies is not relevant here. You must register for VAT if you live in the Netherlands and work as a self-employed translator, even if you never pay any VAT and even if you never charge any of your clients any VAT.

However, you won't have to (or rather: should not) charge VAT to your clients outside the EU. This means that your quarterly VAT returns will be very straight-forward: zero, zero, zero etc. (but you still have to declare it).

In fact, you could get money back, if you make business-related purchases and you choose to declare them for VAT purposes, e.g. computer hardware, office stationery, etc.

See also the tax man's free business handbook, but realise that your situation is somewhat exceptional.


P.L.F. Persio
P_A_Y_X
 

P_A_Y_X
Egyesült Államok
Local time: 12:00
Új felhasználó
angol - orosz
+ ...
VAT in NL for freelancers? May 2

So, the concept is quite similar to duty-free shopping:
For example, I'm flying from the US to Russia with a layover in Amsterdam. I can do some shopping at the airport and get my tax refund before leaving NL. A customs officer verifies that my final destination is outside the EU. Looks like the same principles apply to VAT not being charged for services rendered to non-EU customers.


 


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VAT in the Netherlands







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