Start Paying taxes if you are a business owner in the Netherlands
Paying taxes if you are a business owner in the Netherlands
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If you are a business owner in the Netherlands, you are required to pay taxes. Every quarter you have to file a tax return. As a business owner, you pay taxes on your profit and turnover.
You pay VAT to the Dutch tax authorities
As a business owner, you are required to pay VAT. This is called 'btw' in the Netherlands. You deduct this tax in the price of the product or service you sell. This usually involves 9 or 21 percent VAT on top of the price of your product. You must pay the VAT you receive from your clients to the tax authorities.
You can deduct the VAT you yourself paid to suppliers. So you pay VAT on the difference between your purchase price (including expenses) and selling price.
You file tax returns every 3 months
You are required to file a tax return with the Dutch tax authorities every 3 months. You do this through the tax portal on the tax authorities' website. You log in with your 
You can employ an accountant or bookkeeper to do VAT returns for you. You agree the costs for doing these returns with this accountant or bookkeeper in advance.
If you have not filed the VAT return, you will receive a (high) fine from the Dutch tax authorities. Filing a return every 3 months is mandatory even if your income is €0. If you do not do this, you will be fined. The tax authorities then make their own estimate of your income on which you have to pay taxes.
You report each year how much profit you made
As a business owner, you must file an annual tax return of your company's profits. On this basis, the Dutch tax authorities calculate how much
The
You can 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.
Being employed and having your own business
You can work in salaried employment and have your own business at the same time. You must then file tax returns for your business and also for your salaried work.
In the Netherlands, you must work at least 1225 hours per year for your own business if you want to deduct expenses from your taxes, the deductions. You must then be able to prove that you worked 1225 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.
