Paying taxes and filing a tax return

Income tax

Do you live and work in the Netherlands? If you do, you have to file a tax return each year to report how much you earned. This is called ‘Inkomstenbelasting’ (income tax).

Read how to file an income tax return (Dutch only)

Turnover tax

Are you an independent sex worker? If so, you have to pay VAT. Another word for that is turnover tax.
You charge VAT on your rates and rates per hour. You pay it to the Tax Authorities. Do you buy things to use for your work? If you do, you can request a refund of the VAT you pay for that when you filed your VAT return.

Read about how to do this (Dutch only)

Opting-in means that you work for an employer/operator, but the Tax Authorities don’t consider that paid employment. 

Your employer - the operator - registers you with the Tax Authorities. That person withholds the taxes and premiums on your income and pays these to the Tax Authorities and the UWV (Employee Insurance Agency). In other words, you don’t have to arrange that yourself.

There are three things you need to take care of to work according to opting-in:

• Apply for a Burgerservicenummer or BSN (citizen service number) from you municipality
• Complete two forms that you receive from your employer: ‘Verklaring Loonheffen Opting-in’ (Dutch only, an opting-in wage tax and national insurance contributions statement) and the 'Overzicht Loonheffingen en privacy’ (Dutch only, wage tax and national insurance contributions and privacy overview)
• Give your employer, the operator, a copy of your ID. Never give them the original!

Are you self-employed? If so, think about the following:

• Get a VAT number from the Tax Authorities. You need it to send invoices and to pay taxes. This happens automatically when you register with the Chamber of Commerce (KvK).
• Make sure your financial records are up-to-date and correct. This is important for the Tax Authorities
• Save your tax records for seven years
• You must pay VAT on your income. This is 21% of what you earn. Many people charge this to the customer, so you may want to increase your hourly rate.
• Every 1–3 months you must file your VAT return with the Tax and Customs Administration (Belastingdienst).

Are you not good at bookkeeping? If you aren’t, it’s a good idea to get a bookkeeper. Keep a record for your bookkeeper of all details about your work and what you earn in a ledger. 

You will receive a letter from the Tax Authorities. The letter tells you when you need to file your VAT return and your income tax return. This means you have to report how much you’ve earned. You can deduct some costs related to your work from what you earned, your turnover. This does not apply to clothing and personal care.

You have to file a VAT tax return every three months. In addition, you have to file an income tax return once a year. You can get a bookkeeper to do the returns. Do you want to submit a good return? If so, you need to know what your turnover is and how much you spend. That is why you need to keep a record of your income and expenditures in a ledger. 

If you receive clients at home, you will receive a letter from the Tax and Customs Administration. The letter states when you must file your VAT return and income tax return. This means you must declare how much you have earned. Some work-related expenses can be deducted from the money you have earned (your turnover). This does not apply to clothing and personal care.

You must file a VAT return once every 3 months. In addition, you must file an income tax return once a year. You can have these returns filed by an accountant. To submit a correct tax return, you need to know how high your turnover is and how high your expenses are. You therefore need to keep track of your income and expenses in a cash book.

In some municipalities, you do not need a permit if you work from home. Do you want to know whether you need a permit in your municipality? Contact your municipality for this. This can also be done anonymously.

Also read the text under the heading “Self-employed person (ZZP’er)”.

Do you work in a window brothel? Then the Tax and Customs Administration considers you a self-employed person. You are then required to register with the Chamber of Commerce (KvK). The KvK will register you with the Tax and Customs Administration.

If you work in a window brothel, you will receive a letter from the Tax and Customs Administration. The letter states when you must file your VAT return and income tax return. This means you must declare how much you have earned. Some work-related expenses can be deducted from the money you have earned (your turnover). This does not apply to clothing and personal care.

You must file a VAT return once every 3 months. In addition, you must file an income tax return once a year. You can have these returns filed by an accountant. To submit a correct tax return, you need to know how high your turnover is and how high your expenses are. You therefore need to keep track of your income and expenses in a cash book.

Also read the text under the heading “Self-employed (ZZP’er)”.

Do you work for a club or a private home? In that case, you are working under the opting-in scheme. This is also known as ‘working according to the package of terms and conditions’. Most operators work according to that system. The operator pays the taxes on your income. You are then not considered to have an employer. You will get an overview of what you have earned, and what the operator paid to the Tax Authorities.

You still have to file your income tax return once a year.

Do you want to work under the opting-in scheme? Then you need a registered address and a Citizen Service Number (BSN).

Also read the text under the heading “Opting-in.

You can work as an escort in three ways:
• Under the opting-in scheme. In that case, the same conditions apply as when working at a club or a private house.
• As an employee. This does not happen very often.
• As a self-employed person (ZZP’er). You then pay taxes in the same way as when you work in a window brothel.

Also read the text under the heading “Self-employed (ZZP’er)” and/or “Opting-in”.
 
Read how to apply for a permit