![]() ![]() That means she has received €105 in VAT (€605 - €500). VAT included, she charges her customers €30.25. She has given 20 treatments at €25, in total €500, VAT excluded. Including VAT, Nora has spent €363 on inventory. She purchases footcare products and gives treatments. So hang on to your receipts Example of a VAT return Tip: did you make business expenses before you registered with KVK? You may deduct the VAT and costs that you made up to 3 months prior to your registration from your VAT and income tax. Nor can you deduct the VAT you have paid. ![]() If you practice one of these professions, you do not charge VAT. Examples are physical therapists, nurses, and childcarers. Your client then pays the local VAT, not the Dutch VAT. If you export products to a business client in another EU country, you use the 0% VAT tariff. The 0% VAT tariff applies when you provide goods or services internationally, within the EU. ![]() Check the Tax Administration website (in Dutch). The 9% applies to a limited number of services: hairdressers and shoemakers, for instance. This tariff applies to most entrepreneurs. The standard tariff is 21%, also called the high tariff. As an entrepreneur, you are obliged to levy VAT on the goods or services you provide. The Netherlands works with 3 VAT tariffs: 21%, 9%, and 0%. So, if you need to file your VAT return for the first quarter of a year, the deadline for filing – and paying – is 30 April. You have 1 month after the end of the quarter to do so. Most entrepreneurs have to file every 3 months. If the Tax and Customs Administration sees you as an entrepreneur, you have to file VAT returns (‘btw-aangifte’). The hours criterion applies to most schemes under the entrepreneur allowance, but not for the SME exemption. To meet the hours criterion you spend at least 1,225 hours per year on your business – some 24 hours per week. Are you eligible for deductibles? If the Tax Administration regards you an ' entrepreneur for income tax', you probably are. The private business ownership allowance is an example of one such scheme. The Dutch government uses tax allowances to stimulate entrepreneurship. Then you will know what to expect when you file your VAT and income tax returns. It features a calculation example for income tax, so you can estimate how much money to set aside for taxes. What is the difference between turnover tax and income tax? And which deductibles and allowances can a starting business make use of? Use this article to help find your way. Did you recently register your business at KVK? Or are you about to do so? As a starting business you will have to deal with taxes. ![]()
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