Categorie: VAT

Choosing Your Business Type

In the Netherlands, you can choose between an eenmanszaak, VOF, or a BV:

• Eenmanszaak: Best for small businesses with one owner. It’s easy to start and has lower costs. 

• VOF (Vennootschap onder Firma): A partnership between two or more people. Partners share responsibility for debts and profits. It’s simpler than a BV but doesn’t offer limited liability.

• BV: Better for bigger businesses. It requires more paperwork and has higher setup costs but offers limited liability.

Income Tax for Eenmanszaak and VOF

If you have an eenmanszaak or VOF, your profit is your personal income, and you pay income tax. Here are the main points:

• Tax Rates: The income tax in 2025 has three brackets:
  

  • 35.82% for income up to €38,441.

  • 37.48% for income from €38,441 up to €76,817.

  • 49.50% for income from €76,817.

• Self-Employed Deduction (Zelfstandigenaftrek):
  

  • You can reduce your taxable income by €2,470 if you work at least 1,225 hours per year on your business.

• Starter’s Deduction:
  

  • New entrepreneurs can claim in the first 5 years an extra deduction of €2,123 for three years.

• VOF: In a VOF, each partner pays income tax on their share of the profits. The deductions (like the Zelfstandigenaftrek) apply to each partner individually if they meet the conditions.

Corporate Income Tax (CIT) for BV

If you run a BV, the business pays corporate income tax on its profits.

• Tax Rates in 2025:
  

  • 19% for profits up to €200,000.

  • 25.8% for profits above €200,000.
    

• Salary for Directors:
  

  • If you own a BV, you must pay yourself a minimum salary (€56,000 in 2025). This is taxed under income tax.

VAT (Value Added Tax)

Most businesses in the Netherlands must charge VAT on their products or services:

• Standard Rate: 21% for most goods and services.
  

• Reduced Rate: 9% for things like food, books, and medicines.
  

• Exemptions: Some services, like education and healthcare, don’t charge VAT.
  

• Small Business VAT Scheme:
  

  • If your yearly turnover is under €20,000, you can opt out of charging VAT through the small business scheme.

Social Security and Health Insurance

• Eenmanszaak and VOF: You must pay for your own health insurance and contribute to national social security through income tax.

• BV: The BV contributes to social security for you as an employee, and you still pay for health insurance.
  

Registering with the Tax Office

After your chamber of commerce registration your company will be automatically registered with the Dutch Tax and Customs Administration (Belastingdienst) All businesses must be registered. Once registered, you will receive:

• A VAT number (if applicable).

• A tax identification number.

Filing Taxes

• Eenmanszaak and VOF:
  

  • File income tax once a year (before May 1).

  • File VAT returns every quarter.

• VOF:
  Each partner is responsible for their own income tax return for their share of the profits.

• BV:
  

  • File corporate income tax once a year.

  • File payroll tax returns monthly for employees.

  • File VAT returns every quarter.