What are the basic administration requirements?
You are obliged by law to record anything with financial implications for your business in a systematic administration. It is also important for yourself to keep a proper financial administration. It gives you a wealth of business information and insight into how your company is progressing.
Keep for seven years
Books and documents which are important for corporation tax, turnover tax and income tax purposes have to be kept for seven years, as laid down in the Dutch Civil Code (Algemene Wet inzake Rijksbelastingen).
What to keep?
What documents are important for your business administration? All information which you record on paper or electronically such as: cashbook administration and receipts; sales and purchases book; invoices received and copies of invoices sent; bank statements; contracts, agreements and other such documents; software and databases.
BTW (turnover tax)
Your administration must show how much turnover tax you have to pay to the tax authorities. You need to keep a record of:
- invoices which you issue;
- invoices which you have to pay;
- private use of goods and services.
Your invoices should be numbered progressively and in a series. The invoices should state:
- invoice date and number;
- name and address of the supplier or customer (and the turnover tax identification number when trading with another EU country);
- description of the goods delivered or service provided;
- prices exclusive of turnover tax;
- the turnover tax amounts, split into turnover tax rates.
Expatax can help you with the administration of your business and take care of the tax filing obligations. For more information see www.expatax.nl/freelancer and for our packages see www.expatax.nl/freelance-package.