Paying taxes if you are a business owner in the Netherlands

As a business owner, you are required to pay VAT. This is called

You can deduct the VAT you paid to suppliers. So you pay VAT on the difference between your purchase price (including expenses) and selling price.

You must file a tax return with the Tax Administration every 3 months. You do this in the tax portal on their website. How you log in depends on your situation:

• You are self-employed: you log in with your

  DigiD
  .

• You have a company that is a legal entity, such as a private limited company: you use

  Eherkenning
  to log in.

You can also employ an accountant or bookkeeper to do the VAT return for you. Agree the cost of this in advance with your accountant or bookkeeper.

It is mandatory to file a tax return every 3 months, even if your income is € 0. If you do not file your tax return, you could receive a high fine from the Tax Administration. The Tax Administration will then make an estimate of your income and the tax you have to pay.

As a business owner, you must file an annual tax return of your company's profits. The Dutch Tax Administration uses this to calculate how much

The

You can also employ an accountant or bookkeeper to do the annual tax return for you. Agree the cost of this tax return in advance with your accountant or bookkeeper.

You can work in salaried employment and have your own business at the same time. You must then file tax returns for both jobs.

In the Netherlands, you must work at least 1,225 hours a year in your own business to deduct certain expenses from your taxes. These are the deductions. You must be able to prove that you worked 1,225 hours.

If you do not do this, you will miss out on many financial benefits. If you are in this situation, you can contact the tax information line or stop by a tax information point for more information. You can also contact an accountant or bookkeeper.