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3acc6d00
Community Member

Taxes in The Netherlands

Hi everyone,

 

So I have quite a complicated topic. I have a company in The Netherlands, so every 3 months I have to fill in and pay income taxes. It's all very easy when working with Dutch clients, but clients from outside of the EU or even overseas is another thing entirely.

 

Now I'd like to know what I need to do for this. I filled in my VAT number, but it keeps getting rejected even though I'm a 100% sure it's valid? Like, sorry Upwork I can't change my VAT? But then there's two things I need to know:

 

How much tax do I need to charge with customers without a company number?

How much tax do I need to charge with customers with a company number?

What can I do when Upwork keeps rejecting a valid VAT number, and how do I process Upwork income? Do I pay tax over this as well?

 

Thank you so much for helping!

10 REPLIES 10
g_vasilevski
Retired Team Member
Retired Team Member

Hi Tom,


Just to clarify, Upwork charges the country-specific Value Added Tax (VAT) to freelancers and agencies in the European Union (EU), unless you provide a valid VAT number. VAT will be assessed on services provided by us, not on services you provide your clients. To learn more about VAT check out this Help Article.

 

You can verify the validity of a VAT number by entering it in the VIES database. Let us know if it verifies in the database but not on Upwork. Thank you.

~ Goran
Upwork

It is valid according to VIES as well, but still it got rejected twice by Upwork. Do I just keep adding it to my profile until it get's accepted?

Hi Tom,


One of our team members will reach out to you directly via ticket and will assist you further with adding your VAT number. Thank you.

~ Goran
Upwork

Oh also, when I’m making an invoice, do I have to make one for the amount I’m receiving after Upwork cut off 20%, or over the entire amount? Because it would be kind of weird to pay tax over for example $300 if I only receive $240 right?

Hi Tom,

 

I would suggest reaching out to a local specialist about this and consulting yourself accordingly. Thank you.

~ Goran
Upwork

Tom - you can deduct the commissions charged by Upwork as a business expense or as "invoice received" on your quarterly tax declaration. That way they don´t factor into the amount on which you are taxed. This is how I do my taxes (on the advice of a tax advisor). 

 

 

Hi Gergana,

 

Thank you! Are you from the Netherlands? I would love to have a short call or chat with you to discuss this to make sure I'm doing things right if you'd be okay with that.

 

Kind regards,

Tom

Hi Tom

 

Did you manage to get a response on this? Would be keen to know more

sabrina-knaap
Community Member

Hi Tom, 

 

Saw your post about tax. Why is it easy for Dutch clients? You get paid hourly.. do you increasy your hourly rate with the 21% tax or how do you arrange this?

 

In the EU you can use vat reversed charge but do you also use this for Dutch clients? 

 

Let me know how you arrange this

97d882d3
Community Member

Hi Goran, I am in the same situation. Did you solve the issue? How? How did you fill the Tax settings form? As an individual or as a corporation?

Thank you in advance for taking the time to reply!

Beatrice

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