When you work as a freelancer you are in possession of a VAT ID (btw-ID) and that means you have to pay taxes to the Tax Authorities (Belastingdienst). For all the hours you have worked you receive 21% VAT (btw) from your client, and you pay this to the turnover tax (omzetbelasting), or VAT declaration (btw-aangifte). You file your VAT return every quarter, so four times a year. Are you using the small business scheme (KOR)? Then you do not have to file a VAT return.
When you file your first VAT return, the Tax Authorities will send you the return by mail. You will then receive four letters:
1. | A letter with login information.
2. | A letter with your password.
3. | A letter explaining whether you are liable to pay tax.
4. | A letter with tax return periods. You need this information for the Tax Authorities' business/entrepreneur page. Via your personal page, you file your VAT return.
To help you a bit, we have written a white paper that explains everything step by step.
