The Netherlands has a high rate of freelancers and self-employed workers. According to the Netherlands Chamber of Commerce (KvK), more than 1,1 million workers (about 17% of the population) are full-time self-employed in the Netherlands. Despite the growing popularity of self-employment, many find it difficult to deal with their finances. Keeping track of finances as a freelancer in the Netherlands doesn't have to be difficult. Below, we have listed the 5 most common mistakes that are made during bookkeeping in the Netherlands. By avoiding these mistakes you will save a lot of time, money and your business can grow even further.
When creating an invoice for your clients, it is important that you enter the correct VAT rate for each specific type of item or service. Levying an incorrect VAT amount can be fined by the tax authorities, so be careful about this. In addition, you may have to deal with the reverse-charging VAT, especially when you do business abroad. We advise you to outsource your bookkeeping, so that you can be sure that the bookkeeping is done right and accurate.
The most common VAT deductions for freelancers in the Netherlands are:
Please note: this is not tax advice. Always consult the advice of a professional bookkeeper or accountant to check which rates and conditions apply to your situation.
The thing that is perhaps the most disadvantageous about Excel, is that it is often unclear. When the tax authorities come to check, it must be possible to do this within a reasonable period of time, with Excel this is often impossible. If an error is discovered during an inspection, this can cost you a lot of money due to fines from the tax authorities. We therefore advise you to use online bookkeeping programs, such as E-boekhouden or Moneybird.
Another mistake that entrepreneurs frequently make is that they throw away the receipt for the business dinner. Allthough the VAT may not be deducted, the receipt with the costs does belong in the financial administration of your business.
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