What qualifies you as a Dutch entrepreneur?

When does KVK see you as an entrepreneur?

KVK uses 3 criteria to decide if you are an entrepreneur:

1. You supply goods and/or services on your own. Or you are preparing to do so. For example, you have already started sourcing products.
2. You earn money from your activities. You charge more than a nominal/symbolic fee.
3. You regularly do business with other people, not just friends and family. You also compete with other entrepreneurs who provide the same or similar services or products.

Do you meet these conditions? Then you can register your business with KVK.

Are you not sure? Or do you not meet all the criteria? If so, please answer these 4 extra questions. If you answer ‘yes’ to all of them, you can still register as a business owner:

1. Will you invest money and/or time to start or grow your business?
2. Is it a one-off job or will you regularly work on your own business?
3. Do you have more than one client or customer? Or are you actively looking for them?
4. Do you decide for yourself when and how you do your work?

When are you an entrepreneur for VAT purposes?

When you register your business with KVK, your details will be passed on to the Netherlands Tax Administration (Belastingdienst). To assess if you are an entrepreneur for turnover tax (VAT) purposes, the Tax Administration considers the following points:

• Do you practice a profession or run a business independently?
• Do you have regular income?
• Do you have income in addition to a permanent job?
• Are you trying to earn an income from an IP right or from assets, such as renting out a (holiday) home or receiving royalties for the use of a patent, trade mark, or logo?

Read more about how the Tax Administration assesses whether you are an entrpreneur for VAT purposes (in Dutch). If so, you must charge VAT and file VAT returns. Is your turnover €20,000 or less per year? If so, you can opt into the small businesses scheme (KOR). In that case, you do not need to charge VAT or submit VAT returns.

Are you an entrepreneur for VAT purposes? Then you are not automatically an entrepreneur for income tax. This is because the Tax Administration considers different conditions for income tax purposes.

When are you an entrepreneur for income tax purposes?

Have you registered with KVK? Then the Tax Administration will be sent your details.

Do you sell products or provide services for a fee? If you expect to make a profit from this, you may be considered an entrepreneur for income tax purposes.

The Tax Administration decides if your income is ‘profit from business activities’ (winst uit onderneming). If yes, you are an entrepreneur.

To do this, the Tax Administration looks at things such as:

• Independence: are you in charge of how you arrange your work? Do you determine your prices? Do you use your own materials, tools, or equipment?

• Business risk: are you liable for your business debts? Do you run a financial risk if your business does not go well?

• Continuity: do you invest time and money in finding new customers? Do you have enough funds to run your business for some time?

• Business size: do you have multiple clients? What is your average yearly turnover?

Read more about how the Tax Administration determines whether you are an entrepreneur for income tax purposes (in Dutch).

Check if you are eligible for tax deductions and allowances

If you are an entrepreneur for income tax purposes, you can make use of special schemes. For instance: the entrepreneur allowance, the SME profit exemption, the private business ownership allowance, and the small projects investment credit (KIA). Be aware that you can only benefit from these schemes if you also meet the hours criterion.

Are you self-employed? Avoid false self-employment

If you register as a sole proprietorship, you must also follow the rules governing self-employment. You and your client must ensure that your working relationship does not, in fact, constitute an employment relationship. Find out how you can avoid false self-employment.