Reply
cancel
Showing results for 
Search instead for 
Did you mean: 
Reply

Taxes in The Netherlands

3acc6d00
Active Member
Tom D Member Since: Oct 25, 2020
1 of 9

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!

g_vasilevski
Moderator
Goran V Moderator Member Since: Mar 24, 2017
2 of 9

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.


Untitled
3acc6d00
Active Member
Tom D Member Since: Oct 25, 2020
3 of 9

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?

g_vasilevski
Moderator
Goran V Moderator Member Since: Mar 24, 2017
4 of 9

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.


Untitled
3acc6d00
Active Member
Tom D Member Since: Oct 25, 2020
5 of 9
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?
g_vasilevski
Moderator
Goran V Moderator Member Since: Mar 24, 2017
6 of 9

Hi Tom,

 

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


Untitled
geri_kol
Ace Contributor
Gergana K Member Since: Dec 11, 2019
7 of 9

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). 

 

 

3acc6d00
Active Member
Tom D Member Since: Oct 25, 2020
8 of 9

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

d6ad86e4
Active Member
Vlad H Member Since: Apr 8, 2021
9 of 9

Hi Tom

 

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

TOP SOLUTION AUTHORS
TOP KUDOED MEMBERS