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Exchanging tips on how to file taxes Dutch - Netherlands

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Active Member
Judith W Member Since: May 27, 2018
1 of 8

Hey guys,

I've been working through Upwork for a while now, currently working for two companies on long-term contracts. Although having read almost every page about taxes (belasting) in Dutch, I'm still very confused....as I went through the forum, I saw I wasn't the only one in a confused state about VAT. 

I was wondering if there was someone who could help me out what to do in order to properly file taxes as a Dutch freelancer. So far I read that I should bill my clients - almost like a 'fake bill' - on which I would write the 21% VAT that we are obliged to pay as Dutch freelancers. This bill should include both of our VAT numbers. 

So say, my client pays me $20/h , I should charge him around $16/h and mark the $4/h as VAT. 

So here my questions... 
A. Am I going the right way with these thoughts?
B. Does this work the same with non EU-countries

C. Is there anything my clients have to do, besides accepting the bills I send them?

 

Thank you!

Ace Contributor
Erik S Member Since: Apr 6, 2018
2 of 8

The only one you should trust on how to file dutch taxes is a dutch tax advisor. I rekommend you book a meeting with one as soon as possible.

 

 

Active Member
Judith W Member Since: May 27, 2018
3 of 8

Thank you Erik. I will consult a tax advisor as soon as I'm in the Netherlands again....but as just a simple starter with a basic income living in Asia, I thought it wouldn't be too bad to share tips on here. It seems more people are struggling with these questions and I think creating an invoice with VAT on Upwork is more or less the same for all Dutch freelancers. Since Upwork is a different system then say 'regular clients', I struggle adding VAT to the billings. It seems to be a reverse process. 

However, consulting an advisor will give me definite answers and clearity, so I appreciate your response!

Community Guru
Petra R Member Since: Aug 3, 2011
4 of 8

Judith W wrote:

Thank you Erik. I will consult a tax advisor as soon as I'm in the Netherlands again....but as just a simple starter with a basic income living in Asia, I thought it wouldn't be too bad to share tips on here.


 If you are iving in Asia, should you not consult a tax advisor in the country you are living in?

 

Active Member
Judith W Member Since: May 27, 2018
5 of 8

Hey,  I have a non-resident taxpayer status. It means that, as I'm working for Dutch companies, I have to file for taxes in the Netherlands.

Community Guru
Petra R Member Since: Aug 3, 2011
6 of 8

Judith W wrote:

Hey,  I have a non-resident taxpayer status. It means that, as I'm working for Dutch companies, I have to file for taxes in the Netherlands.


 Smiley Happy minefield! Smiley Happy

 

Community Leader
Ines H Member Since: Feb 15, 2017
BEST ANSWER
7 of 8

Hey Judith,

 

I consulted with a tax advisor and they couldn't grasp the concept of Upwork - they figured Upwork operates in the same way as freelancing agencies in the Netherlands.

 

Did a bunch of research on my own though, so here's how I'm doing it at the moment:

 

1. For each Upwork's invoice, I create an invoice for my own bookkeeping (regardless of the client being in EU or not) and attach Upwork's invoice to it

2. My invoice contains my full details + VAT ID and the client's full address

3. If the client is in EU and has a VAT ID, I add their ID to the invoice, "charge" 0% VAT and add a note at the bottom that VAT is reverse-charged to the client

4. If the client is in EU and doesn't have (or doesn't provide) a VAT ID, I -should- charge 21% VAT (just like in the example you mentioned) -- but see note #2 below

(5. If the client is in NL, charge 21% VAT regardless of having VAT ID)

 

Quarterly VAT reports:

 

1. For EU clients/invoices which you have VAT IDs for, you'll need to file an additional form (Opgaaf intracommunautaire prestaties)

2. For EU clients who didn't provide or don't have VAT IDs, I file through MOSS (Btw betalen via 1 lidstaat van de EU) -- I've only done this once or twice and I had to pay the tax amounts of the countries I was filing taxes for. So e.g. for a client from Portugal, I had to pay 23% if I recall correctly. Not 21%. I may have messed that up though.

 

Hope this helps!

 

Cheers

Active Member
Judith W Member Since: May 27, 2018
8 of 8

Thank you so much Ines! This is super helpful. I knew there was a lot more to it then simply providing the Tax Service with the invoices from Upwork. A lot of administration that we have to do ourselves.. So I guess I really have some research to do!

 

Thanks!!

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