As a freelancer, you face two taxes: income tax (inkomstenbelasting) and turnover tax (omzetbelasting). We explain them briefly below.
Income tax | In general, everyone working in the Netherlands is required to file a tax return. You file this tax return each year, no later than May 1, for the previous fiscal year. This means you have to file a tax return for your income in 2023 before May 1, 20. As a freelancer, you are responsible for filing your income tax return yourself. So always keep money in reserve in case you have to pay income tax. You can file your tax return via ´Mijn Belastingdienst´.
Do you want to know exactly how income tax works? Here is an article about income tax. At the bottom of the article, you can download the YoungOnes White paper.
Turnover tax or VAT declaration | Do you use the KOR scheme? Then this does not apply to you. Everyone with a VAT ID (btw ID), is liable for tax. You file quarterly returns, which is four times a year. With the sales tax, you indicate how much VAT you have received and paid that quarter. Then it is calculated whether you will receive a VAT refund or have to pay VAT. Make sure you always keep the VAT you receive separate. You file your tax return via 'mijn belastingdienst'.
Do you want to know exactly how the VAT return works? Here is an article about turnover tax. At the bottom of the article, you can download the YoungOnes White paper.
Do you work as a part-time freelancer? | Take a look at the conditions of the renewed Small Businesses Scheme (kleineondernemersregeling, KOR). If you earn less than €20,000 per year, you may qualify for the KOR and no longer have to file a VAT return. Click here for more information about the Small Businesses Scheme.
