You are a freelancer. You have a VAT ID. This means that for all the hours you work, you receive 21% VAT on top of your hourly rate. Unfortunately, this extra money is not yours. You must remit this during your turnover tax return, also known as the VAT return. You file the VAT return every quarter—four times a year. Make sure you set this money aside so that you can transfer it properly at the end of the period.
Do you find this difficult? No problem. You can use the KOR scheme. In that case, you don't have to file a VAT return because you no longer receive VAT. This is only possible if your turnover does not exceed €20,000 per calendar year.
How do you file a turnover tax return?
Check your turnover in your dashboard: Log in to your YoungOnes dashboard and click on the quarter you are filing for. Check the total amount excluding VAT for all your invoices from that quarter. Do the same for the total VAT amount.
Calculate your expenses: Did you incur business expenses last quarter? Add up all the VAT amounts from your receipts. This does not apply to freelancers using the KOR scheme, as you do not receive VAT under that scheme.
Log in to the Tax Authorities (Belastingdienst): Open the tax return for the past quarter.
Enter your turnover: Enter the total amount of your invoices excluding VAT under "turnover" at ‘1a leveringen/diensten belast met hoog tarief’ (deliveries/services taxed at the high rate). Enter the VAT amount under ‘btw’. Leave the rest of the boxes empty.
Enter your expenses: Enter the VAT amount from your expenses at ‘5b. Voorbelasting’ (Input tax).
Submit the return: If everything is correct, you will now see the proper VAT amount. Did you not receive any VAT because you didn't work any gigs, but you did have expenses? Then you will receive a VAT refund. Sign and submit the return.
Pay the VAT: Once you have submitted the return, you can pay immediately via iDeal. Are you getting a refund? Then you don't need to do anything; it will be automatically deposited into your account.
