Freelancer (ZZP)
One of the business structures in The Netherlands is the freelancer.
It is also referred to as ‘Z.Z.P.’ ( Zelfstandige Zonder Personeel ), or small one owner entity.
If you earn a gross salary from your employer in South Africa, while you are residing in the Netherlands, enrolling as a ‘freelancer’ might be an option.
The idea is to calculate your taxable profit at year end, in order to use this as base for your Income tax, settling your Salary Tax.
Your VAT Return Must Be Submitted Timely
If not you will receive an assessment for an amount to pay which is a forecast of your sales for the Quarter period. The VAT authorities will make an calculation, plus impose a fine.
Starting your freelance company:
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- Make a business plan. Make a forecast and plan your new company for the next few years. ( this is not mandatory , just for your own peace of mind)
- Create a name for your company.
- Enrol at the Chamber of Commerce.
- From this date your company will have a ‘Chamber of Commerce’ number.
- You will receive registering documents; archive safely.
- Your new company will also be connected automatically with the Tax Authorities, department VAT ( Sales Tax).
- You will receive documents from the Sales Tax Authorities ; archive safely.
- At the end of the year you will create the end of the year financials, Profit & loss and Balance sheet. The taxable profit/loss will be the basis to file in your Income Tax filing.
The VAT Return
As a small business holder you need to pay VAT on your gross sales and you can claim the VAT on your purchases.
The VAT quarter return will reflect the VAT to pay on your sales invoice and the VAT to reimburse on your purchases for your company. The Balance of VAT sales and VAT purchases will reflect an amount to pay or to receive.
Your quarterly VAT return must be based on a quarterly report reflecting your sales and purchases.
Finally
Please contact me for free advice regarding setting up your own company.
Enjoy what The Netherlands has to offer !!!
