{"id":4261,"date":"2022-07-13T11:25:00","date_gmt":"2022-07-13T11:25:00","guid":{"rendered":"https:\/\/wwwstaging.keesdeboekhouder.nl\/wanneer-ben-je-ondernemer-voor-de-belastingdienst\/"},"modified":"2024-10-11T09:18:22","modified_gmt":"2024-10-11T09:18:22","slug":"when-are-you-an-entrepreneur-in-the-eyes-of-the-tax-authorities","status":"publish","type":"post","link":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/when-are-you-an-entrepreneur-in-the-eyes-of-the-tax-authorities\/","title":{"rendered":"When are you an entrepreneur in the eyes of the tax authorities?"},"content":{"rendered":"\t\t
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It may sound slightly weird, but not every entrepreneur has to declare his or her profits to the Dutch Tax and Customs Administration. You can have a Chamber of Commerce registration, pay VAT every quarter, and still only submit a private income tax return at the end of the year. And the opposite is also perfectly possible: you earn money with your hobby, and you\u2019re now wondering if you\u2019re officially an entrepreneur or not. So how can you determine if you\u2019re an entrepreneur in the eyes of the Dutch Tax and Customs Administration?<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Before you can determine whether you are an entrepreneur in the eyes of the tax authorities, it\u2019s important to first determine whether you have a business. The Dutch Chamber of Commerce (KVK) has three criteria with which it defines a business: you provide a service or product, you charge a commercial rate and you do business with more people than just friends or family. Have you answered all three questions with a \u2018yes\u2019? Congratulations, you\u2019re a business owner!<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Turnover tax and income tax
<\/strong>If you meet the criteria the KVK uses to define a business, this doesn\u2019t automatically mean that you\u2019re an entrepreneur in the eyes of the Dutch Tax and Customs Administration. That\u2019s because there are two types of taxes \u2013 turnover tax and income tax \u2013 both of which have different criteria for an entrepreneurship.<\/p>\n

Criteria turnover tax
<\/strong>You\u2019re obliged to file a VAT return if you\u2019re self-employed and you earn money from your business on a regular basis. Whether you meet these criteria is determined when you register with the KVK. If you\u2019re not registered there, but you do meet the turnover tax criteria, you\u2019re still obliged to request a\u00a0VAT number<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Criteria income tax
<\/strong>Things are different in regard to the income tax, which is filed at the beginning of each new year. In this case, the Dutch Tax and Customs Administration checks on a case-by-case basis whether you\u2019re to be assessed as an entrepreneur. So this is everything but a foregone conclusion.<\/p>\n

The tax authorities will use the following criteria:
1. Continuity \u2013 you strive to continue doing business, for example by attracting new customers or by saving money for future activities.<\/p>\n

2. Business risk \u2013 you bear the risk for any possible financial losses, such as non-paying customers or investments that don\u2019t turn out well.<\/p>\n

3. Size of business \u2013 you work for at least three different customers a year, and over the past three years your profits were larger than your losses.<\/p>\n

4. Independence \u2013 you\u2019re free to arrange your work the way you want to and to determine your own rates.<\/p>\n

You might have noticed that the criteria are not always clearly defined. This means that you, as an entrepreneur, must proactively determine your position. You can use the Check for Entrepreneurs (OndernemersCheck<\/a>, in Dutch) of the Dutch Tax and Customs Administration for this. Please note that the Tax Authorities can always rule differently once they\u2019ve received your tax return, and that you may be obliged to file either a profit return or a private tax return.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Declaring profit or other income
<\/strong>The most important advantage of being an entrepreneur for income tax is the entrepreneur allowance. This consists of several deductions and allowances, but the most commonly used is the private business ownership allowance. To qualify for this, you must meet\u00a0the hour criterion of 1,225 hours<\/a>. This means that you\u2019re working for your business three to four days a week. When the private business ownership allowance is applied, this will save on your taxable profit. In addition, as an entrepreneur you automatically qualify for the SME profit exemption, which means a reduction of fourteen percent on your taxable profit. Both schemes can therefore make a real difference for your tax return!<\/p>\n

If you\u2019re not an entrepreneur for income tax purposes, but you do have an income, you must state this as \u2018Other income\u2019. You may still declare any costs that you have incurred in realising this income, but you\u2019re not entitled to the entrepreneur allowance or the SME profit exemption.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

It may sound slightly weird, but not every entrepreneur has to declare his or her profits to the Dutch Tax and Customs Administration. You can have a Chamber of Commerce registration, pay VAT every quarter, and still only submit a private income tax return at the end of the year. And the opposite is also…<\/p>\n","protected":false},"author":3,"featured_media":3056,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[41],"tags":[],"class_list":["post-4261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-keep-up-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/posts\/4261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/comments?post=4261"}],"version-history":[{"count":4,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/posts\/4261\/revisions"}],"predecessor-version":[{"id":4265,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/posts\/4261\/revisions\/4265"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/media\/3056"}],"wp:attachment":[{"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/media?parent=4261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/categories?post=4261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/tags?post=4261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}