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VAT putting unit price, percentage, total amount on invoices in The Netherlands

volkanakinpasa
Active Member
Volkan A Member Since: Feb 12, 2021
1 of 2
Hi All,
I'm a freelancer in The Netherlands. I'm a bit stuck of understanding of VAT within invoices, maybe not a bit Smiley Happy. I read almost all forums here, but still I'm confused. Please help me to understand the following questions. Wrote many silly questions, but, I believe my questions would guide to other people, your inputs are valuable.
 
I need to file what I have earned from upwork so far and enter in tax return form(btw aangifte, Belastingdienst), before do that, I first need to calculate the total amount to enter. But i can't calculate how...
 
Upwork already created invoices for each contracts. each contract has the "main invoice(like fixed term, bonus etc.)" and "upwork service fee invoice. 20%, 10% etc.". for instance, if I have contract of $100 first time with a customer. the main invoice has total $100 another invoice has 20(20% service fee), I would like to know what/how to put as unit price, VAT% and mention "VAT reverse charge"(if the client is in EU and has VAT ID) on the invoice. and also which amount to put like 100 or 80.
 
Q1:

- VAT % for entrepreneurs who are situated in other EU country? (I THINK it is 0% with putting reverse changed)

- VAT % for entrepreneurs who are situated in NL?
- VAT % for entrepreneurs who are situated outside EU(USA, UK ...)?
- and anything i'm missing? please mention as well
 
- VAT % for individuals(without any VAT ID) who are situated in other EU country?
- VAT % for individuals(without any VAT ID) who are situated in NL?
- VAT % for individuals(without any VAT ID) who are situated outside EU(USA, UK ...)?
- and anything i'm missing? please mention as well
 
Plus, somebody said in the community: "If a client is outside EU: don't include "VAT" on the invoice at all, Invoice for the full amount (i.e. if you earned $200, subtotal/total is $200)". is that true? Because somebody else says you should put 21% of VAT on invoice as they are outside EU. I'm a bit confused. 
 
Q2: When I create my own invoice for each clients, I read here somebody mentioned "VAT reverse charge" to put on invoice. is this for only "entrepreneurs who are situated in EU" or for any others?
 
Q3: When I create my own invoice, If I have to mention VAT, I will write unit amount, VAT%, VAT amount and total amount. Am I gonna put the amount that I get paid(deducted upwork service fee) or the total amount written on the main invoice from upwork(the amount i agreed with the client)? Somebody says deduct service fee, but, another says do not deduct it, just put the total amount written on the contract. Why do I see two different opinions? 
 
Q3-1: If I put the whole amount on my own invoice, am I also gonna fill the same amount on quarterly tax return form on Belastingdienst? Because I get only deducted amount in my bank account. 
 
Q4: Can I file for "upwork service fee" & Buying connect as "business expense" or something else as 'expenses'? if so, do i need to create an invoice for them or no need any invoices? 
 
I would be grateful for your comments
Volkan 
andregutierrez22
Moderator
Andrea G Moderator Member Since: Jul 7, 2020
2 of 2

Hi Volkan,

 

You may wish to consult with a trusted tax expert or advisor about your specific situation and jurisdiction, as Upwork cannot provide tax advice.

 

Thanks!

~Andrea
Upwork
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