You are usually the one to declare VAT
The service supplier usually reverse-charges the VAT to you and sends you an invoice stating this. You will then have to calculate the VAT yourself, and declare it in your VAT return.
Are you allowed to deduct the VAT on your business expenses (in Dutch)? Then you can deduct the VAT you pay from your VAT return as input tax. You will effectively have paid no VAT.
Who pays the VAT?
You can use the Services to and from foreign countries tool (in Dutch) to find out who has to declare VAT: you or your supplier.
Claiming a refund of foreign VAT
If the supplier is not allowed to reverse-charge VAT to you, you will pay the foreign VAT rate. If your supplier is located in the EU, you can often claim a VAT refund from the Dutch Tax Administration. If your supplier is located outside the EU, you can consult with the foreign tax authority to ask about any VAT refund options.
Is your service supplier situated in an EU country? Then read more about VAT on services from other EU countries.
Small Businesses Scheme (KOR)
Please note: if you operate under the Small Businesses Scheme in the Netherlands (KOR), you may not have to pay VAT at all. Nor do you have to pay VAT if the service provided falls under the 0% VAT rate in the Netherlands.
Check: Employee or self-employed professional?
If a person performs the service for you, they may act as an employee or a self-employed professional / freelancer. In the latter case, you are a client rather than an employer, and will need to follow different rules. If you use a model agreement (in Dutch) you avoid having to pay payroll taxes later on.
Also check out whether you need to apply for a work permit or your employee or freelancer (in Dutch).
If you hire a self-employed artist, you may have to use the artist provision (in Dutch). You will have to pay payroll taxes, but no social insurance premiums.
Non-EU nationals: check permits
A service provider operating as a self-employed professional does not require a work permit (TWV in Dutch). In most cases, they will not need a short-stay visa. You, as the client, may have to act as a guarantor for the person coming over. If the stay is longer than 3 months, a residence permit (preceded by a temporary one, an MVV in Dutch) is required.
A service provider who starts in your employment does require a work permit (TWV) for which you have to apply at the Employment Benefit Agency (in Dutch). If the employee is going to stay in the Netherlands for more than 3 months, they will require a single permit (residence and work, GVVA in Dutch) from the Immigration and Naturalisation Service (IND).
See also: Government.nl questions and answers on types of documents for aliens
Importing personal care
Personal care provided in the Netherlands is subject to Dutch law, no matter who provides it. Service providers must comply with Dutch quality standards, such as having valid qualifications, or (in the case of health professionals) being registered in the BIG-register.
Tips
- Draw up a contract to document your agreements. Unless you and your supplier have agreed otherwise, Dutch laws and regulations apply to services rendered in the Netherlands.
- Find out the dos and don’ts (in Dutch) in the country you do business with.
- Make sure you keep your records in order, distinguishing between EU (in Dutch) and non-EU business.
- If your supplier is from outside the EU, you might want to arrange sponsorship or a sponsorship declaration for them. They might need this for a visa.
- Will the person in question stay in the Netherlands for longer than 3 months and are they from outside the EU? Then check if they have a long-stay visa (MVV).
- Check the regulated professions database of the EU.
Statistics: import of services
Import value of total services from all countries.