Self-employment in the Netherlands offers more freedom than regular employment, but it also comes with more responsibilities. You have to store receipts and meet filing deadlines. And you need to understand what to charge, what to track and what the tax office wants from you. Below is a guide to filing a value-added tax (VAT) return while self-employed in the Netherlands – from understanding what you owe to staying compliant.

What's in this article?

• Do ZZP'ers pay VAT in the Netherlands?
  
• What VAT rates apply to self-employed services?
  
• How does VAT invoicing work for ZZP'ers?
  
• How do you file a VAT return as a self-employed person?
  
• When can you get a VAT refund as a ZZP'er?
  
• How Stripe can help with taxes
  

Do ZZP'ers pay VAT in the Netherlands?

Self-employed people in the Netherlands, known as ZZP'ers, pay VAT. Unlike sales tax, VAT is an indirect tax that's applied to purchases at each stage of the supply chain – not just when the final sale is made to the customer. If you're a ZZP'er, you're usually expected to charge VAT on your invoices from the moment you start doing business. The VAT you charge on sales is money you collect on behalf of the government. You add it to your invoices, track it and remit it via your VAT return. But you get to deduct the VAT you've paid on your business expenses.

You must handle VAT, unless one of two exceptions applies to your business:

• Small businesses scheme (kleineondernemersregeling or KOR): If your annual turnover doesn't exceed €20,000, you can opt in to the KOR, which exempts you from charging VAT or filing returns. In exchange, you can't reclaim VAT on your business expenses. It's simpler, but only worthwhile if your costs are low.
  
• VAT-exempt services: Certain services, including healthcare, education and some financial work, are exempt from VAT.
  

What VAT rates apply to self-employed services?

There's no special VAT rate for freelancers or solo business owners. You just charge the rate that applies to what you're selling. In the Netherlands, there are three VAT rates, and which one you use depends on the kind of service or product you're providing:

• Standard rate (21%): If you're a freelance designer, developer, consultant, coach or creative who sells services to Dutch clients, this is likely your VAT rate. The rate differs only if your business explicitly fits in one of the reduced categories or exemptions.
  
• Reduced rate (9%): This rate applies to services such as hairdressing, certain repair work (e.g. fixing bikes or shoes) and paint and plaster work on homes. It also applies to goods such as books, food and medicine. Double-check the lists provided by the Dutch tax authority if you think your work might qualify.
  
• Zero rate (0%): If you're invoicing clients outside the EU for services or goods, you'll typically apply the zero rate. You'll need proof of the client's location and the nature of the service to back it up, if asked. You can still reclaim the VAT on your related expenses if you're selling zero-rate goods or services.
  
• VAT exemptions: VAT-exempt services include healthcare, education, finance and insurance. If one of these legal exemptions applies to your business, you don't charge VAT and you don't reclaim VAT on your expenses.
  

When in doubt, check with the tax office or a local advisor.

How does VAT invoicing work for ZZP'ers?

Once you're registered for VAT in the Netherlands, your invoices have to meet specific legal requirements. Here's what every VAT-compliant invoice needs to include:

• Your full name or business name, address, VAT identification number and your business register number
  
• Your client's full name and address
  
• A unique, sequential invoice number
  
• The date the invoice was sent
  
• A description of the work and the hours or units provided
  
• The date the goods or services were provided
  
• The VAT rate, VAT amount and total including VAT
  

If your invoice is missing any of this information, you risk non-compliance. Your client could also come back asking for a corrected version so they can claim their input VAT.

If your goods or services are exempt from VAT, make a note of that and the reason for the exemption (e.g. "VAT exempt under KOR").

Here are a few other rules to remember:

• You're required to send invoices by the 15th of the month after you deliver the service. For example, work finished in April should be invoiced by 15 May. Many freelancers invoice right away or at the end of the month.
  
• Under Dutch law, you have to keep your invoices – and all business records – for at least seven years. They don't need to be on paper (digital is fine), but they need to be accessible and well organised in case of an audit.
  

You can use invoicing software to make all this easier. It can automatically generate sequential invoice numbers, calculate VAT and include all the required fields. Stripe Invoicing, for instance, can add VAT rates, include your VAT ID and let you itemise services.

How do you file a VAT return as a self-employed person?

Filing your VAT return is how you show the Dutch tax office what VAT you charged and what VAT you paid. ZZP'ers typically file quarterly, although some are assigned monthly or annual filing deadlines depending on their revenue or refund histories. The tax office sets the cadence when you register.

Here's how the process works.

Keep your records up-to-date

You'll need totals for:

• VAT you charged clients (i.e. output VAT)
  
• VAT you paid on business expenses (i.e. input VAT)
  

Track those either on a spreadsheet or with accounting software. Many freelancers move the VAT they collect into a separate account immediately to avoid spending what they'll eventually owe.

Log into the tax portal

You can file online through the Mijn Belastingdienst Zakelijk portal. Sole proprietors can log in with DigiD. BVs – the Dutch equivalent of private limited companies – need a different electronic identification known as eHerkenning. For quarterly filers, the return is due the last day of the month after the quarter ends (e.g. a Q1 return is due 30 April).

Fill out the return

You'll enter:

• Total sales and VAT collected (split by rate)
  
• Total VAT on expenses you're claiming back
  

Then, calculate the difference. If you charged €1,050 in VAT and paid €210 on business costs, you owe €840. If you paid more input VAT than you charged output VAT, you'll get a refund. Include zero-rated or EU cross-border sales if they apply and declare reverse-charged VAT when relevant.

Even if you had no sales and no expenses, you still have to file a zero return. Skipping it triggers an estimated tax bill and possible penalties.

Pay what you owe

Once you file the return, you need to transfer the money to the Dutch tax authority, the Belastingdienst, with the right payment reference. Payment is due the same day as the filing deadline. If you miss it, you might have to pay a fine or interest.

Keep your backup documents

You don't upload receipts, but you do need to keep them for at least 7 years (10 for real estate). Save copies of your return and the supporting invoices in case of an audit.

Report VAT from sales to EU countries

If your sales span multiple EU countries, you must declare the VAT you collect in each of them. You can do so in one place through the One Stop Shop (OSS).

Stripe Tax can help simplify the filing process. It can automatically calculate the VAT you should collect based on location and product type and generate reports that make return filing much faster.

When can you get a VAT refund as a ZZP'er?

You get a VAT refund when the VAT you've paid on business expenses is greater than the VAT you've charged to clients during a filing period. This is common when you're starting out, investing in equipment or doing a lot of zero-rated or international work.

Here's when refunds generally happen.

You spent more than you earned

Early-stage freelancers often rack up costs before revenue increases. Maybe you bought a laptop, software or office setup, but your client income was light that quarter. If your input VAT outweighs your output VAT, you receive a refund.

You work mostly with clients outside the EU

Sales to non-EU clients are often taxed at 0%. That means you don't charge VAT, but you still get to reclaim VAT on your Dutch business expenses. If your entire quarter is full of zero-rated exports but you paid VAT on various business expenses, you'll likely get a refund.

You issue a credit invoice

If you refunded a client and already submitted VAT on that sale, you can adjust for it in the next return. You won't always get a refund, but this will lower what you owe and sometimes makes the balance negative.

You sell at the reduced rate but buy at the standard rate

If you provide services at the reduced VAT rate of 9% (e.g. certain creative or repair work) but most of your business purchases are taxed at 21%, it's possible that your input VAT will exceed your output VAT.

If your VAT balance ends up negative, the refund process activates automatically. Ensure the tax office has your correct bank information on file. It'll deposit the refund, usually within a few weeks after the return deadline. If you owe back taxes or penalties, the tax authority will typically subtract those first. Otherwise, you'll get the full amount.

If you're consistently filing for refunds, the tax office might investigate. Assure that your records are thorough, especially for zero-rated international work or large up-front investments. If the office asks for proof, you'll need to back up the numbers with invoices and receipts.

How Stripe can help with taxes

Stripe Tax can simplify tax compliance so you can focus on growing your business. It helps you monitor your obligations and alerts you when you exceed a tax registration threshold based on your Stripe transactions. It also calculates and collects VAT automatically on both physical and digital goods and services. You can integrate Stripe Tax with a single line of code, through the Stripe Dashboard or using the application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, it takes seconds to switch on tax collection in a new country.
  
• Register to pay tax: Let Stripe manage your global tax registrations and you can benefit from a simplified process that prefills application details – saving you time and simplifying compliance with local regulations.
  
• Collect tax automatically: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and stays up-to-date on tax rules and rate changes.
  
• Simplify filing: Stripe Tax integrates with filing partners easily so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.
  

Learn more about Stripe Tax or get started today.