Freelancing is a common way to earn an income in the Netherlands. If you also want to become a freelancer make sure that you satisfy all legal requirements and that you are also working independent from your client to prevent that the tax authorities will treat you as an employee instead of a freelancer.
Check whether your residence status allows you to work as a freelancer especially if you come from outside the European Union.
Once you are convinced that you can work as a freelancer the first step is to make an appointment with the Chamber of Commerce to register your business in the trade register. Once registered the tax authorities will give you a VAT number and inform you how often you will have to file a VAT return.
You will need to send invoices to your clients and determine whether VAT will have to be charged and which rate is applicable. You can claim back the VAT which you pay on your expenses. So make sure you keep all the incoming and outgoing invoices. It would also be good to use a separate bank account for your business.
The freelance income will have to be declared in your annual income tax return. You will have to pay tax on your profit. Benefit is that the profit can be reduced by claiming the applicable tax exemptions and tax credits for freelancers. It is also important that the right expenses are deducted.
Don’t let the tax obligations ruin your business. Expatax can help you. We have created special packages for freelancers which cover the filing of VAT returns and the income tax return.