As a freelancer, you often have to deal with investments and business costs. Suppose you start working as a freelancer at a gas station, and you need special safety shoes for that. You need these shoes exclusively for your freelance job and therefore fall under your business costs*.


Do you use the ´KOR´?

You can choose the Small Business Scheme (KOR) if your turnover remains below 20,000 euros per calendar year. If you use the KOR and have it enabled in your account, YoungOnes will not charge VAT to the clients on your invoices. You also do not remit VAT to the Tax and Customs Administration (Belastingdienst). However, you cannot deduct VAT on business expenses and investments. You can declare your business expenses (including VAT) in your income tax return as costs, which reduces your taxable income (the income you pay taxes on). You are not allowed to reclaim VAT on your business expenses because you are using the KOR.


Investment deduction

In addition, the Tax and Customs Administration offers an investment deduction for small-scale investments (KIA). You can use this if you make investments in your company, which provides you with additional tax deduction above a certain amount. Read the conditions on the Tax and Customs Administration's website.


Investment deduction

In addition, the Tax and Customs Administration offers an investment deduction for small-scale investments (KIA). You can use this if you make investments in your company, which provides you with additional tax deduction above a certain amount. Read the conditions on the Tax and Customs Administration's website.


Business expenses

In principle, you may only deduct business expenses that the Tax and Customs Administration sees as business expenses. Example: An expensive brand jacket that you bought remains a private expense. Only products that are exclusively for your company (e.g. steel-toe work shoes) are fully deductible*. See the website of the Tax and Customs Administration for the conditions. It is also important that you do some administration as freelancer. Read more about that below.


Admininistration

If you do not use the KOR, it is important to have an administration. We have set up useful administration tools specifically for you. View them here.


*Please note: This is an example. We do not provide tax advice on what can and cannot be deducted.