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Government information for entrepreneurs

Preventing liability for payroll tax and VAT for temporary staff

This information is provided by

Netherlands Enterprise Agency, RVO

If you run a company in the Netherlands and you need temporary staff, you can hire them via an intermediary such as a temporary employment or secondment agency. You can also subcontract work to a contractor/subcontractor. In both cases the intermediary or contractor/subcontractor must pay the payroll tax for these temporary staff.

If this company fails to do so, the Dutch Tax and Customs Administration (Belastingdienst) may hold you liableExternal link. If you hire staff via an intermediary, they may also hold you liable for the turnover tax owed by this intermediary on the work carried out.

Preventing liability

You can prevent any liability by complying with the following conditions, among other things:

All conditions are set out in the (Dutch-language) brochure Liability for payroll tax and VAT when hiring in staffExternal link (Aansprakelijkheid voor loonheffingen en btw bij inlening van personeel) and Liability for payroll tax when using a subcontractorExternal link from the Dutch Tax and Customs Administration.

Limiting liability

  • You ask your intermediary or (sub)contractor for a payment history reportExternal link from the Tax and Customs Administration (in Dutch). This report will show whether your intermediary or (sub)contractor had paid his payroll tax at the time when the report was compiled.
  • You include a perpetual clause in the contract with your (sub)contractor. This states that he may not contract out the work without your permission.
  • You keep proper records, including records of the wages paid to your staff. If you are still held liable by the Tax and Customs Administration, they can more accurately fix the amount that you owe in payroll tax, so you do not pay too much.

This information is provided by

Netherlands Enterprise Agency, RVO