When you start working as a freelancer via Minite, you need to apply for a VAT number. Once you have received your VAT number, you are required to file VAT returns every quarter. Even if you haven’t earned any income as a freelancer but have an active VAT number, you still need to file a VAT return. In this article, we will explain how to file this VAT return.

(Disclaimer: We can only help by sharing knowledge, for example through this article. You are responsible for correctly filling out your tax returns. In this article, we will submit an example of a VAT return for a freelancer who only works via Minite.)

What is the difference between your VAT return and income tax?

VAT or VAT return (for businesses/freelancers)

• Is done every quarter by registered freelancers. Concerns invoices WITH VAT.

Income tax (for every person with income)

• If you live in the Netherlands or have income from the Netherlands, you must pay tax on that income. You pay taxes on income, financial interests in a company, savings, and investments. The Tax Authorities collect income tax. Your income tax return is filed every year in April. Concerns invoices WITHOUT VAT.

Who files VAT returns?
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Every freelancer with a VAT number must file a tax return every quarter. Note that there are high fines for failing to submit your return. Even if you haven't worked, but you do have a VAT number, you still need to file. Thus, always file your return! The only exception is if you have applied for and received a KOR ruling (small entrepreneurs scheme). A KOR ruling is only valid from the next quarter after your application has been approved.‍

When do I file my VAT return?
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You file your VAT return every quarter, before the fixed deadlines below. Make sure the money is received by the tax authorities by the last day of the month. Keep in mind your bank's processing time, especially if the deadline for the VAT return is on a weekend. Additionally, since many people file on the last day, the tax authority's website sometimes crashes. Please don’t wait until the last moment and avoid unnecessary stress!

Quarter 1 (January/February/March): Deadline April 30, 23:59
Quarter 2 (April/May/June): Deadline July 31, 23:59
Quarter 3 (July/August/September): Deadline October 31, 23:59
Quarter 4 (October/November/December): Deadline January 31, 23:59

Which invoices do I consider for my VAT return?
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For your VAT return, you use all invoices with an invoice date within the quarter you are filing for. For example, for the second quarter, you include all invoices dated in April, May, or June. If you worked hours in March but the invoice is dated in April, you should include it in your second-quarter return.Only the invoice date matters, not the date you worked on or when the invoice was paid. Even if your invoice hasn’t been paid yet, if it has an invoice date within the current quarter, you should include it.

Step-by-step explanation of the VAT return

Step 1: Log in
Go to https://mijnzakelijk.belastingdienst.nl/onp-ng/#/home and log in to your account.

Step 2: Outstanding return
Click on 'VAT' and view the overview of all submitted and outstanding VAT returns. Go to 'outstanding returns'.
The following question appears: 'Do you have anything to report for this period?'

• 'Yes': When you have a VAT number and have worked as a freelancer.
• 'No': When you have a VAT number but have not worked as a freelancer. Note that there are high fines for not filing, even if you haven’t worked. So always file your return!

Step 3: Filing your taxes
When you indicate that you have something to report for this quarter, you will see the following screen.

If both you and your clients are based in the Netherlands, you only need to fill in the orange (1a), green (1a), and blue (5b) marked fields. If you or any of your clients are based outside the Netherlands, you need to consult a tax advisor. For now, we will proceed with the most likely scenario that both you and your clients are located in the Netherlands.

Orange field: Revenue
In the revenue field in 1a, enter your revenue excluding VAT. If you have multiple invoices within the current quarter, you must sum all these amounts up and enter them in the orange marked field. Note: You can only enter rounded numbers. You may round in your favor.

Green field: VAT
In the box for your VAT in 1a, enter your VAT. You can find this next to your revenue excluding VAT on your invoice. The same applies to VAT: if you have multiple invoices within the current quarter, you must sum all these amounts and enter them in the green marked field. Note: You can only enter rounded numbers. You may round in your favor.

Blue field: Advance Tax
'Input tax' includes expenses that you incur as a freelancer for your business for which you can reclaim VAT. This also includes the VAT you pay to Minite for the 'admin fee.' You can find this amount under 'VAT' in the section about the 'Admin Fee' on your invoice. Similarly, for advance tax, if you have multiple invoices within the current quarter, you must sum all these amounts up and enter them in the blue marked field. Note: You can only enter rounded numbers. You may round in your favor.

Once you have filled in these three fields, you have completed your VAT return. The VAT you need to pay is the amount of the VAT minus the input tax. This will also be calculated automatically for you when you fill in the fields.

Step 4: Payment
After you have filled in the above form, click 'submit.' A PDF will be generated automatically consisting of an overview of your return for the respective quarter. You now only need to make the payment. The amount, account number, and reference number can be found in your PDF overview. Pay close attention to this and ensure that you have transferred the accurate amount to the tax authorities before the deadline. Again, consider your bank's processing time.

When you have completed all these steps, your tax return for this quarter is finished. If you encounter any issues, you can always consult the website of the Dutch Tax and Customs Administration here Belastingdienst Nederland. Consult a tax advisor if you have a different personal situation.