Dutch Tax Blog

Dutch Tax Blog

VAT rules on bad debts simplified

General Dutch (Tax) NewsPosted by Mike de Gruijl Tue, September 20, 2016 11:04:11

Proposal to simplify refunding VAT on bad debts

The Financial Secretary has proposed to simplify the refund of VAT on bad debts by January 1, 2017.
The right to reimbursement arises at least asfar as the compensation is not received by your organization in one year due, fully or in part.


If an invoice is issued with a payment date of September 8, 2016, and the bill is not paid on September 8, 2017, the VAT on bad debts may already be reclaimed.
Another change is that your organization then itself will deduct the refund to the regular VAT return for the period in which it is clear that the debtor will not pay and the organization for that purpose will not have the need to do an application for refund of VAT on bad debts by letter.
If your organization receives the outstanding amount in a later stadium fully or in part, the VAT has te be still (partly) paid to the tax authorities.

Faster & Easier

This proposed amendment will most likely result in a faster and easier way for your organization to recover the VAT on bad debts in the future.

Do you want to learn more about your particular situation and your tax matters?
Check our site and contact us Tax & Service Solutions

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Internet sales, hobbyist or entrepreneur

General Dutch (Tax) NewsPosted by Mike de Gruijl Tue, September 13, 2016 11:16:11

Are you only selling your goods as a person via the internet or as a business?

For the Tax Authorities its is difficult, because of the rise of the Internet economy to determine whether someone is a hobbyist or an entrepreneur. This is mentioned in internal documents of the Expertise Enforcement (EHI) from the tax authorities.

A world without the internet
A world without the Internet is impossible to imagine in today's economy. This also has implications for the tax authorities in terms of tax and enforcement. Consumers are able more easily through the Internet to act on the market as a provider of goods and services. The transition from hobby to business also makes it easier. In practice, the tax authorities find it difficult to distinguish whether a person is a hobbyist or an entrepreneur . For example, when is a hobbyist who refurbishes and sells bicycles classified as an entrepreneur? If he refurbishes and sells some bikes, the Tax authorities notes this as amateurism, which no tax is levied. If this man however sells on regular basis , then this is regarded as entrepreneurship and the income taxed as income from business.

Good control is difficult for tax authorities

The complicated distinction between hobbyists and entrepreneurs will lead to enforcement problems with the tax authorities. For the tax authorities it is indeed not easy to control it properly. There is often a small business making implementation costs exceed revenues. EHI recommends in its document, to continuously monitor developments and provide information about tax obligations through the website of the Tax Administration.

Conditions for entrepreneurship

The Tax and employs some conditions in order to determine whether a person is an entrepreneur for income tax purposes. Like the following;
-The entrepreneur should aim for profit.
-He decides when and how he carries out his duties and has several clients and customers. ---He invests in his company
-He accepts entrepreneurial risk and take action to ensure that his company continues to exist.
For VAT purposes , a person will be much faster an entrepreneur;
- When a person provides goods or services, he must calculate in principle compulsory VAT.

The discussion is very actual at this moment in The Netherlands especially for people who rent out their home via Airbnb

When you are not sure wether you will be determined as a person or entrepreneur it is always wise to ask help from an expert.
Tax & Service Solutions is an expert when it comes to all your tax matters. check our website for more information.

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ZZP? Beware for your contracts!

General Dutch (Tax) NewsPosted by Mike de Gruijl Sat, September 03, 2016 14:50:08

Still lots of work to be done!
Contracts for self-employed workers, the replacement of the Declaration labor relationship (VAR), have been rejected nearly half of all times by the Dutch Tax Authorities.

That is what Eric Wiebes Secretary of state (Finance) let know after a WOB (public administration law) requested by "MKB belangen"

Since May 1 of this year, at the implementation of the Law Review deregulation of labor relations (DBA) The tax authorities received 4481 model agreements from freelancers. Of these, about half are still pending, 1,033 have been rejected.

In 370 cases, the rate model agreements freelancer contracts have been approved. In 814 of the cases, the application was demolished, Wiebes reports.

As of May 1, 2016, the Declaration labor relationship (VAR) for self-employed (freelancers) has been abolished. Until 1 May next year there is a transitional period in which the Tax Authorities emphasis on awareness and implementation.

The VAR was designed to determine whether companies should include payroll and pay tax on the income of self-employed workers.

These were people officially working as a freelancer but were actually employed by the employer. For the Tax Administration this was difficult to check. As of May, the DBA controls the relationship between client and freelancer.


MKB Belangen, an organization for ZZP'ers and smaller companies, three months after its introduction MKB Belangen calls it a "massacre".

"In July we have already concluded that the DBA has failed. But the figures that have now come out scare us enormously," announces MKB Belangen's director Adrienne van Veen.

11 weeks
It also turns out form the requested documents that the review time toke an average time of 11 weeks. This is way much longer than the 6 weeks the Tax Authorities aimed at.

A spokeswoman for Wiebe calls the criticism of Van Veen nonsense. "There is absolutely no massacre going on right now. At this moment matters are being revealed where the question is whether a person is self-employed or is working on a permanent (employed) basis. This is exactly what the Act DBA is meant for," said the spokeswoman.

Wiebe is therefore just the next few months with the pulse of industry associations Act DBA, while keeping a close finger.

Good advice needed
Because of the above mentioned matters it is always wise to consult an expert to see wether your contracts are DBA proof as a ZZP'er or small business. This can help you avoiding repairing contracts which are made already and most of all safe you lots of money and frustration.

Tax & Service Solutions is your partner when it comes to all tax matters and helps you making the right choices and contracts. More info can be found at https://www.tssolutions.nl

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News from the Dutch Tax Authorities

General Dutch (Tax) NewsPosted by Mike de Gruijl Thu, September 01, 2016 11:49:41

News from the Dutch Tax Authorities

From September 1 2016, The Dutch Tax Authorities are going to send seven (extra) messages for the first time digitally to the My Government (Mijn Overheid) inbox of every individual tax payer in The Netherlands.

There are seven new types of decisions/letters to income and starting from the year 2014.

The following messages are now sent digitally:

- The official tax assessment

- Subsequent recovery assessment

- Automatic reduction assessment

- Statement on the objection

- Decision on refunds

- Carry Back

- Request for official (next/decrease) provisional assessment

All messages are still sent on paper for at least 2 years.

More and more digital

Step by step The Dutch Tax Authorities will send more messages digitally. The invitation for filing your declaration, the provisional assessment and the final assessment of income have already been sent digitally. With this extension of digital services, taxpayers are increasingly creating a digital tax administration with the help of the tax authorities.

More information can be found at Tax & Service Solutions

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Champagne cheaper in 2017

General Dutch (Tax) NewsPosted by Mike de Gruijl Sun, August 28, 2016 14:19:57

The 'luxury tax' on sparkling drinks such as champagne, prosecco and cava expires on 1 January 2017
A bottle will become on average 1.10 euros cheaper.

The special rate did not apply to cheaper bottles of prosecco with a screw cap. According to RTL ten million bottles sparkling beverage are sold annually. The adjustment of the taxes will cost the Dutch government approximately 10 million euros.

The adjustment of the special rate was already agreed on in 2012 in the budget agreement that the VVD, CDA, D66, GroenLinks and the Christian Union concluded .

For sparkling wine Dutch residents paid far more tax, because this was qualified as a more upscale product. "This difference is nowadays, including the emergence of cheaper sparkling products is no longer justified," was already mentioned in the elaboration of the budget agreement.

Excise duties

in recent years excise duties on alcohol have gone right up in the Netherlands. For alcoholic drinks consumers had to pay nearly 10 percent more in 2016 than in February 2011.

Liquor stores
Of course we have to wait and see if the liquor stores and supermarkets will pass on this benefit to the consumers or that they will take this opportunity to increase their profit...


This Dutch tax blog is presented to you by Tax & Service Solutions

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Will Belgium drop the rates for corporate tax?

General Dutch (Tax) NewsPosted by Mike de Gruijl Wed, August 24, 2016 13:26:23

Belgium is considering lowering the corporate tax gradually until 2020 from 33.99 percent to 20 percent.

That is a proposal which Belgian media have laid hands on. It is uncertain whether there is enough political support. Sources close to Government mention that the Belgian government can still modify the plans.

Companies would be losing the bulk of their current deductions to reduce.

One of the options for financing the plan is to increase the dividend from 27 to 30 percent. The abolition of the interest deduction for companies with many shareholders' equity is a possibility.

The Belgian government wants to encourage companies to borrow less money. The Belgian Finance Minister, Johan Van Overtveldt (N-VA), suggested the idea earlier this year order to simplify the tax system. Also, elsewhere in Europe governments are examining ways to a simplify their system for corporation tax.

The Netherlands
For know The Netherlands are still interesting for companies to start and continue business due to the low corporate tax which maybe wil be even be more interesting in the future when the plans of secretary of state Wiebes will be effectuated.

More information on starting a business in The Netherlands

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Foreign investors rental market Netherlands

General Dutch (Tax) NewsPosted by Mike de Gruijl Sat, August 20, 2016 21:34:55

Foreign investors are increasingly focusing on the Dutch rental market.

From 2013 to 2015 corporations sold 15,000 homes to investors, according to figures from the Authority's housing associations, reports NRC.

The majority of them relates to social housing and the majority ended up with foreign investors.

Foreign investors previously invested more in offices and retail, now the Dutch rental market is discovered.

Not happy

Not everyone is happy with the arrival of investors. Because of the investors, it is feared that the sale by corporations contribute to the further shrinking of available social housing.

Arnhem, Barneveld and Dongen sued Minister Stef Blok (VVD Housing) for the court, to get his approval be reversed for the sale of Vestia homes in their communities. With success, the court declared Bloks decision void end of June.

striking investors

There are notable among investors. The American billionaire and philanthropist George Soros bought over six hundred apartments in the Arnhem region of corporation Vivare.

The transaction record is held by the German property fund Patrizia that bought in 2014 more than 5,500 apartments and houses of the tottering corporation Vestia for 570 million euros. US Roundhill Capital says having bought approximately 9,000 apartments on the Dutch market in three years.

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Belgian "Invasion" Zeeland Flanders

General Dutch (Tax) NewsPosted by Mike de Gruijl Mon, August 08, 2016 11:32:31

Belgian "Invasion" Zeeland Flanders.

It's a matter of time before half the inhabitants of Zeeland Flanders is Belgian. If the throughput growth of Belgians will grow like it does now, this will be the case over 35 years, Omroep Zeeland calculated.

The low property prices made that hundreds of Flemish moves to Zeeland annually since 2011. A property in Flanders takes an average of 239,000 euros, in Zeeland Flanders this is 174,000 euros. If you also take in a count that The Netherlands also have the tax benefits like mortgage intrest deduction it is not hard to understand why the Flemish cross the border in these big numbers.

10 to 15 years

There is a chance that the Belgians will already be sooner in the majority at the southernmost point of Zeeland. Anthropologist Herman Tak think it will take only 10 to 15 years. "As soon as one sheep crosses the dam, the rest will follow," he says. He expects the influx of Flemings will increase significantly in the upcoming years. A logical development that you saw around Amsterdam in the seventies, young people continue to work in the city and live in the countryside.

Herman Tak thinks the arrival of the Belgians is a solution to the depopulation of the region. "I think Zeeland Flanders will immensely benefit this situation and will make the rest of Zeeland envious of this development ."


Especially near the border there are many houses sold to Belgians. In Eede and Nieuw-Namen nearly half the population is Belgian already. In the town of Sluis most of Belgians live. The Belgian Invasion appears to be confined to Zeeland Flanders. In the rest of Zealand, the number of Belgian residents remained almost the same in recent years.

More information about your immigration possibilities to The Netherlands? Check our site at Tax & Service Solutions

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