Taxes

If you work in the Netherlands, you pay Dutch taxes on your profit, your income and your business’s revenue.  

Paying tax as a self-employed person in the Netherlands 

If you work as a self-employed person or independent contractor in the Netherlands, you also have to pay tax. This rule applies to everyone who works for themselves. For example, you pay tax on: 

• your income (what you earn) 
• your revenue (everything you sell) 
• your profit (your income minus your costs) 

In some cases you also pay municipal taxes or environmental taxes. 

Filing a tax return 

You have to file a tax return with Belastingdienst every year. You do this online on the Belastingdienst website. You also decide whether you want to build up a pension for later. If you put money aside for retirement now, in most cases you do not pay tax on it yet. You can deduct this amount when you file your tax return. 

Registering with the Chamber of Commerce and Belastingdienst 

If you are starting out as a self-employed person in the Netherlands, you need to register with the Chamber of Commerce (KVK). You will then appear in the Business Register. KVK will automatically send your information to Belastingdienst. This means you do not need to register separately with Belastingdienst except in certain situations. 

When do you need to register directly with Belastingdienst? 

If you are a self-employed person from an EU country and you are unable to register with KVK, you must register with Belastingdienst. To do this, complete the 'Registration Form for Foreign Companies'. More information is provided on the Belastingdienst website. 

Paying VAT 

If you are self-employed or have your own business, you normally have to pay VAT, which is a tax on your revenue. This is also called value-added tax. 

You pay VAT if, for example, you: 

• are a hairdresser 
• sell things 
• offer a service 

It does not matter whether you are a sole trader or have a different type of business, such as a general partnership or private limited company. 

You are closing down your business. What do you need to do? 

If you stop being self-employed you must inform the Chamber of Commerce (KVK). It will send you written confirmation and will inform Belastingdienst. 

Important! You still need to file one final tax return. After that, all taxes will stop automatically.