Freelance - Freelancer - Freelancing in the Netherlands

The terms ´freelance´ and ´zzp´ ('zelfstandige zonder personeel' or self-employed without staff) are used interchangeably with little difference between the two. When this site talks about ´freelancers´ the term automatically also refers to 'zzps´.

More and more people are working as freelancers. While freelance work used to be associated with journalists and photographers for example, these days freelancers also work in sectors such as construction and IT. If you go freelance, you should pay extra attention to your situation, because the term 'freelancer' is not a definition recognized by law. Freelancers operate somewhere in between being self-employed and being in paid employment.

Your freelance situation is defined on the basis of a number of factors:

Social security legislation

Social security agencies such as the UWV evaluate the independence of freelancers on the basis of the actual circumstances. For example:

the scope of the work;
the number of clients;
the level of turnover;
the presentation to the outside world.

If you work as a freelancer and are considered to be self-employed, the client does not have to deduct social security premiums from your freelance payments. If you are not considered to be self-employed, the client does have to deduct social security premiums.

Tax legislation

Freelancers have to pay turnover tax and income tax.

Turnover tax (VAT)

Anyone who practices a profession independently is considered to be self-employed for the purposes of turnover tax.

Every quarter a VAT return must be filed. VAT is very complex. We can help you with all your questions.

Income tax

The Tax authorities use four criteria to determine whether a freelancer is self-employed: independence, sustainability, profit motive and the number of clients. Freelancers are charged income tax on their income. The three categories of income tax are:

Business profits

If the tax authorities consider you to be self-employed, you can declare your freelance income as business profits. You may be eligible for self-employed persons' tax allowances.

Salary from employment contract

If you have an employment contract, the client (= employer) deducts income tax from the freelancer's salary and pays this to the Tax authorities.

Freelancing as a secondary activity

Income from work which cannot be considered either as salary or as business profits is known as secondary income. This income is known as income from other activities.

Registration with the Chamber of Commerce

Professionals working in the so-called free professions (such as artists and journalists) do not have to register in the trade register of the Chamber of Commerce.

In general, freelancers who do not come under this category are obliged to register. Establishment requirements may also apply to certain activities.

Labour law

The freelancer is in paid employment if:

he performs work in person in a certain period;
the employer is obliged to pay salary;
there is a relationship of authority between the client and the freelancer.

If the freelancer is in paid employment, he is entitled to rights under Dutch Labour law such as protection from dismissal and the minimum wage.

VAR declaration

To get some more security about the fact whether the tax office will treat you as a independent freelancer or a fictitious employee you can request the tax office to send a VAR declaration. A special form has to be used to request a VAR declaration.

Creating invoices

To make some money it's important that you send invoices for the work you did. This must be done before the 15th of the month after the service has been provided by you. An invoice must meet certain requirements to be accepted by the taxoffice. VAT is only deductible if it is mentioned on an invoice which is made according to the rules. So this is important for you and your client.

EU regulations concerning invoices

If you are working as a freelancer you must keep an administration, file VAT returns and file the annual income tax return. This may not be easy, so we can help you with that.

Look at our bookkeeping section to find out more about our services.