Most entrepreneurs have one task in their work they dislike above all else: Bookkeeping. Accountancy and keeping the records up-to-date are a close second, with filing for Tax returns coming in third. This is not something new, nor even strange, as these tasks can become rather frustrating and tedious if they’re not part of your day-to-day activities. It feels for most like an obligation standing in the way of the ‘real’ job you have when being a business owner.
Small mistakes can have major consequences when filing for VAT returns and updating company records. Many roles, laws and exceptions within those laws must be considered (differing per industry, type of company, service, country, etc.), which becomes a very precise job. Because of this, many entrepreneurs outsource their bookkeeping and tax returns to certified advisors.
VAT declaration and turnover tax
In the Netherlands, most business owners are obliged to file their VAT returns. In order to successfully submit a VAT return, you are required to accurately document your VAT records and submit them monthly, quarterly or annually. You must clearly state which invoices you have issued and paid (with the corresponding VAT amounts), in addition to your income, expenditure and your private use of services or goods.
The VAT amount you have to remit is deducted from the VAT you need to receive.
Missing the deadline of VAT return submission means risking a fine. If you trust us to handle your bookkeeping and VAT declarations, we will ensure that you’ll receive a timely reminder in order to avoid such fines.
Please note: if you do business outside of the Netherlands, there are additional rules that need to be taken into consideration when filing your VAT declarations. At KR Financieel Advies, we have experience with international SME companies and taxes. We can help you with any question you might have.
As sole proprietorship or freelancer, are you obliged to draw up annual accounts?
One-person businesses (including all self-employed, start-ups and freelancers) are not obliged to draw up an annual report. However, preparing your balance, P&L and annual report could be the right thing to do to keep track of your finances. An annual report is not only created to satisfy the tax authorities, the Chamber of Commerce and (possibly) your bank or investors. It can also gives you a good overview of the (financial) health of your business and may give insights on potential growth opportunities.
More often than not, we include the following items in financial statements:
– Balance sheet (including specification)
– Profit and loss account (including specification)
– Tangible assets (including specification and depreciation)
– Your taxes
Administration and VAT rate for doing business abroad
Our specialists at KR Financieel Advies regularly receive the following questions:
- What VAT rate should I invoice when delivering goods & services abroad?
- Is there a difference between VAT rates within the EU and outside of the EU?
- Am I obliged to state the VAT number on my invoice directed towards a foreign partner?
Different tax rules and administrative conditions are applied to goods and services supplied outside of the Netherlands (whether within or outside the EU). Each type of service or product has its own rules on export, VAT rates and accounting. For goods delivered outside of the EU, additional documentation must be provided to prove that your product has left the EU zone.
For these reasons, we advise you to first contact a trusted advisor or tax expert before you take your business abroad. Otherwise, you may be risking overpaying, or receiving too little in return.
For any business-related questions, in the Netherlands or abroad, you’ve come to the right place at KR Financieel Advies! Let us unburden you of those time-consuming tasks such as: tax declaration, VAT returns and accounting. Contact us today for a free consultation!
Bookkeeping and Tax advice
In addition to Bookkeeping, VAT and tax returns, you can also contact us for your mortgage, insurances and financial planning. You will have your own contact person, that you can call directly.
At KR Financieel Advies we work with fixed fees and prices, so you know in advance what your costs are going to be. Our way of working is based on the form that fits you best: we can get together once every three months to discuss the VAT returns, but we can also communicate digitally. If there is a change in the state of affairs, we’re always available for any questions to provide you with any practical tips (for example: raising the price of your goods or services, or advice on which VAT rate to apply to one of the new services abroad). This real-time support is included in our fee.
