Xpub3: freelance admin: Difference between revisions

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What rates do I apply to my invoices: <br>
What rates do I apply to my invoices: <br>
_selling self-made books, publications, and artworks (zines, books, mixed-media publications that have a physical element, art prints, postcards etc.) - 9% <br>
_selling self-made books, publications, and artworks (zines, books, mixed-media publications that have a physical element, art prints, postcards etc.) - '''9% VAT''' <br>
_everything else - 21% <br>
_everything else (facilitating workshop, making graphic designs, commissioned artwork etc.) - '''21% VAT''' <br>


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=== <span style="color: white; font-family: Menlo; text-decoration:none; background-color: #cc00cc; padding-top: 0.1vw; padding-bottom: 0.1vw; padding-left: 0.1vw; padding-right: 0.2vw;"> _business expenses</span>===

Revision as of 18:37, 21 November 2023

_intro

Registering as a sole entrepreneur in the Netherlands helped me being able to get paid as a freelancer and have clients from all around Europe [compared to my try-out in Bulgaria, where being a small business is quite challenging - the admin & accounting situation is much less supportive for small fish like me]. As you're automatically VAT-registered, you can also get back VAT for things you bought for your business. Here are the steps I went through while learning how to manage this new endeavour. ;-)

_registration

_Firstly, you need to register at ▶▶ KVK [Chamber of Commerce - Kamer van Koophandel].
_As an artist and freelancer, I made a registration as an ▶▶ Eenmanszaak (sole proprietorship).
_Then, you log in with your DigiD and fill in the information about your future business.
_When you finish it, you need to make an appointment with the KVK. You can do it in any city in the Netherlands, it doesn't need to be in the one you live in at the moment.
_For your appointment, you need to bring a few documents [they will send you the list over email] - such as your ID card. You will also need to pay 75 EUR fee.
_The agent will go through your whole application and will fill in all the necessary info for you. So, you don't need to worry if you're not sure about some info you needed to add.
_You have to pick up maximum three SBI codes (Standaard Bedrijfsidentificatie) from the ▶▶ Netherlands Chamber of Commerce KVK:

SBI codes classify companies according to their business activities. Many (government) organisations use SBI codes. You can change your SBI code at KVK if you have received an incorrect code, or if your business activities change. If you take up extra business activities, you can get up to two extra SBI codes. (but you will have to pay for it)

_For my artistic and design practice, I picked three codes: primary 9003: art and design work (for me doing art work, selling artworks etc.); and also 74101: graphic design, web design (for services connected to design) and 85522: workshops for art (when facilitating activities and workshops).
_After your meeting at KVK, you will receive a letter in your physical mailbox containing your VAT registration confirmation and your VAT number.

and of course...
_you need to be registered at your local municipality and have a home address & BSN to do this
_you can use your personal bank account for your company

_VAT stuff

...coming soon...

_VAT report

...coming soon...

_VAT rates

In the Netherlands, the standard VAT rate is 21%. There are two additional special rates: the 9% rate and the 0% rate (zero rate).

You can read about them in more detail ▶▶ here.

What rates do I apply to my invoices:
_selling self-made books, publications, and artworks (zines, books, mixed-media publications that have a physical element, art prints, postcards etc.) - 9% VAT
_everything else (facilitating workshop, making graphic designs, commissioned artwork etc.) - 21% VAT

_business expenses

...coming soon...

_annual tax report

...when the time comes I'll update the steps here.

_useful links

▶▶ what info should be on your invoice
▶▶ explanations of the turnover tax declaration // in dutch
▶▶ what are the different VAT rates in the Netherlands
▶▶ where to fill in the VAT report
▶▶ which costs are tax deductible
▶▶ chat with tax administration and ask questions
▶▶ where to get your business register extract