Since January 1, 2024, significant changes have been made to the tax interest rates that may affect your business. The rate for corporate tax has increased to 10%, while for other taxes, such as income tax, the tax interest rate is now 7.5%. To avoid unexpected tax interest, our advice is to request a provisional assessment in a timely manner. In this article, you’ll learn how and when to best do this.

What is Tax Interest?

Tax interest is charged when the Tax Authorities cannot finalize your assessment on time. This can happen if you file your return late or if the return is lower than the final assessment. You pay interest on the amount you need to pay. Usually, you don’t receive interest on a tax refund unless the Tax Authorities take an unreasonably long time to issue your assessment.

Increase in Tax Interest Rates

As of January 1, 2024, the tax interest rates have been adjusted:

  • Corporate Tax (VPB): Increased to 10% (was 8%).
  • Other Taxes (such as income tax): Increased to 7.5% (was 6%).

These new rates apply to both payable and receivable tax interest. For allowances, the interest rate remains unchanged at 4%.

Avoiding Tax Interest by Requesting a Provisional Assessment


If you expect to owe income or corporate tax for the year 2023, you can avoid tax interest by filing your return on time or requesting a provisional assessment.

Tip: Ensure that you accurately estimate the tax due. If you overestimate, the Tax Authorities do not reimburse tax interest on the excess amount paid.

Are you a Luca Book client? We can file the provisional assessment for you at a fixed rate. Schedule an appointment to discuss this.

How and When to File IB and VPB Returns?

To avoid tax interest, it is important to file your returns on time:

  • Income Tax (IB): File your return or provisional assessment before May 1, 2024. The Tax Authorities may not charge interest on the amount calculated in the return or provisional assessment.
  • Corporate Tax (VPB): File your return before June 1, 2024, or request a provisional assessment before May 1, 2024. Similarly, the Tax Authorities may not charge interest if you meet these deadlines.

Note: Ensure that you adjust the provisional assessment carefully when circumstances change. Providing deliberately incorrect information can result in fines.
Tip: If you take a defensible position in your return that is later corrected by the Tax Authorities, you will be liable for tax interest. Tax interest is calculated based on the time elapsed and the extent of the deviation from the return.

Need Advice?

Are you considering taking a defensible position or have other tax-related questions? Make sure to get proper advice from one of our tax advisors. We are ready to assist you with comprehensive advice and support to optimize your tax position.
Contact us today for a personal consultation. Together, we will ensure that your business avoids unexpected financial surprises.

Why this is important:

It is essential that allowance recipients report any changes in income or significant life events as soon as possible. With the app, you can view the current data used to calculate your allowance. For example, you can see how much allowance you receive per month and which income is taken into account. Has your income changed? You can immediately report this via the app, including for your partner or cohabitant for housing allowance. This way, you receive exactly what you are entitled to, no more and no less.

Stay up-to-date with the app:

The government keeps you informed about your allowances through the app. You will receive a notification when something needs to be checked or adjusted for your allowance, such as your income. Then you can check if your details are still correct and adjust them if necessary.

If you wish, you can receive a notification every time a new message appears in the app. When installing the app, simply choose ‘allow notifications’. This way, you will be notified when a new message is available for you. If you prefer, you can also enable this setting later in the app.

Do you want more information about the app and to download it directly? Click on this link.

When is tax payment not necessary?

If you sell items as a hobby or for personal use, you usually don’t have to pay taxes on the income. For example:

  • Selling clothes you no longer wear on Vinted.
  • Selling old magazines or comics on Marktplaats.
  • Getting rid of old sports equipment on Tweedehands.net.
  • Selling furniture before moving house on Marktplaats.

In such cases, you don’t need to report this income to the tax authorities. For more information, you can visit the page ‘Is your online activity a hobby or a business?‘ (in Dutch).

When do you need to pay taxes?

If you buy items with the intention of selling them for profit, your online sales are considered a source of income and you must pay tax on the profit. For example:

  • You realize that your vinyl records or comic books are worth a lot and actively seek them out to sell. In this case, you must pay tax because you’re selling them with the intention of making a profit.

Reporting obligation versus paying taxes

Since January 1, 2023, online platforms are required to provide data if a seller makes 30 or more sales or exceeds €2000. However, this doesn’t automatically mean you have to pay taxes on this income, even if you exceed these thresholds. If the platform needs to provide information about you, you’ll receive a quarterly overview of the turnover. Check this carefully and report any errors to the platform.

Attention! There’s no threshold for reporting obligations for renting and services via an online platform. These platforms must provide all transaction data to the tax authorities.

Here are a few crucial points:

  1. Aruba is a separate country within the Kingdom of the Netherlands but falls under the EU for certain aspects.
  2. However, Aruba does not fall under the free movement of goods and services within the EU concerning VAT. In Aruba, VAT is referred to as “BBO,” which stands for “Belasting op Bedrijfsomzetten” (Tax on Business Turnover).
  3. For VAT purposes, Aruba should thus be considered a non-EU country.
  4. When providing services, the VAT rates differ for exports compared to products. This depends on whether the recipient can reclaim VAT (has a VAT number).
    A. If the recipient does not have a VAT number: Pay VAT in the country where the service is provided. Therefore, register with the Aruban tax authorities and ensure that you mention the correct VAT rate on the invoice.
    B. If the recipient does have a VAT number: Charge 0% VAT on the invoice. Inquire with the country whether you need to file a return (in most cases, this is not necessary, and 0% can be noted on the invoice).

Conclusion:

  1. Register with the “Departmento di Impuesto” (Aruba’s tax authorities).
  2. File taxes for the BBO or obtain tax exemptions.
  3. Issue invoices mentioning the BBO. The BBO is remitted in Aruba, while income is taxed in the Netherlands.

We are going to talk about two things:

  1. If you are required to declare VAT.
  2. If you do not have to declare VAT.

Mandatory for all types of invoices

These are the important things that should be included on an invoice, whether or not you have to pay VAT:

  • The word ‘invoice’ with the date of the invoice and the date on which the goods were delivered or the service was performed.
  • A unique invoice number that you keep increasing. Do not use numbers randomly or start over each time. You can also add letters if it is convenient. For example, start with ‘FI3092’ and then ‘FI3093’, and so on.
  • Your name or the name of your company and your address. A post office box alone is not sufficient. Use the name you have registered with the Chamber of Commerce. If you are not registered with the Chamber of Commerce, use your own name.
  • The name of the person or company receiving the goods or services, along with their address.
  • Your bank account number.
  • What you have delivered, with quantity and a description.
  • The price per unit or per hour and any discount, along with the total costs.
  • The amounts without VAT, the VAT rate, and the VAT amount that you have to pay, as well as the total amount that needs to be paid.
  • The payment due date, for example, within 30 days.

If you are required to declare VAT

For businesses that are required to file VAT returns, there are specific rules they must adhere to:

  • You must mention your VAT identification number. You should have received this number in a letter from the Tax Authorities. If you do not remember it, you can also find it on the website of the Tax Authorities. Go to: https://www.belastingdienst.nl/wps/wcm/connect/nl/ondernemers/content/inloggen-voor-ondernemers. Log in with DigiD or E-recognition. Go to the “Omzetbelasting” tab. On the left, you will see ‘VAT identification number.’ Click on it. Then you will see two numbers. Use only the VAT identification number on the invoice, not the turnover number.

If you are liable for VAT, you need to know how to calculate VAT. Normally, you calculate 21% or 9% VAT on the amounts stated on the invoice. But there are exceptions as well. Here are three briefly discussed:

  • ‘Btw verlegd’ means that the VAT is owed by the person you are doing business with. This only happens if you regularly provide services to a regular customer. This is mainly relevant in sectors such as construction, shipbuilding, cleaning companies, and landscaping. If you do not work in any of these sectors, the VAT is likely not shifted.
  • ‘Invoice issued by recipient’ occurs when your customer creates the invoice themselves, known as ‘self-billing’. Note: although the customer creates the invoice, you are still responsible for ensuring that all information is correctly noted.
  • ‘Margin scheme’ is indicated on the invoice that the products fall under the margin scheme. This can only be done if you sell second-hand products. You do not mention VAT on the invoice for the rest.Wat gebeurt er als je geen btw hoeft te betalen?

In that case, you still need to adhere to certain rules and include special mentions, especially when running a small business. In other words, you must explain why you are not charging VAT. Generally, there are two scenarios:

  • If the Tax Authorities have determined that you are exempt from VAT, you do not need to mention a VAT identification number. You probably have not received this information from the Tax Authorities. On the invoice, you must state why you are not charging VAT, for example, ‘exempt from VAT based on article…’, where the legal basis for the exemption must be described in detail. In some cases, you may need to make specific mentions resulting from the legislation, for example, in the sale of art objects, antiques, motor vehicles, travel agencies, used goods, and so on. It is advisable to consult the accountant for the exact requirements.
  • In general, the Tax Authorities determine whether or not you are exempt. Sometimes, certain products or services are exempt. You still need to mention your VAT identification number but indicate that this specific product is exempt from VAT. The Tax Authorities have published a list of services and products that are exempt from VAT: click here to see the list.

What is a legal form (“rechtsvorm”)?

A legal form is the legal structure you choose for your company. When registering with the Chamber of Commerce (KVK), you must specify this type of business. This choice determines, among other things, how much liability you have for debts and tax obligations.

Legal forms with legal personality:

Legal forms with legal personality require a notary to be involved in their establishment. As the owner of the company, you are not personally liable for the debts. For example, if the company goes bankrupt, you do not have to pay the debts with your own money. Moreover, the tax burden is lower for these types of business forms if the profit exceeds 100,000 euros.

  • Private Limited Company (BV): A BV is a business form where the capital is divided into shares. The owners are liable only up to the amount they have invested.
  • Public Limited Company (NV): An NV is similar to a BV, but the shares can be freely traded on the stock exchange.
  • Association: An association is a collaboration with a common goal, without profit motive. Members have limited liability.
  • Cooperative: A cooperative is a business form where members are joint owners and collaborate for the collective interest.
  • Foundation: A foundation is an organization with a specific purpose, without profit motive. It has no members or shareholders but does have a board.

Legal forms without legal personality:

With these business forms, you are personally responsible. If the company goes bankrupt and has many debts, you are personally responsible for paying these debts. The advantage is that you do not need a notary to start this type of business. Up to approximately 80,000-100,000 euros in profit, this business form is more fiscally advantageous.

  • Sole Proprietorship: In a sole proprietorship, one person is the owner and liable for all debts of the business with their personal assets.
  • General Partnership (VOF): A VOF is a collaboration between two or more individuals or parties, where all partners are jointly liable for the debts of the business.
  • Limited Partnership (CV): A CV is a form of partnership where managing partners are actively involved in the management of the business, and silent partners only contribute financially.
  • Partnership: A partnership is a form of collaboration between multiple independent entrepreneurs, where they jointly practice a profession or business. Each partner is jointly liable for the debts of the partnership.

Choose carefully, considering the impact of the chosen legal form on your business and personal responsibilities. Seek advice from a tax specialist or accountant.

To qualify for the KIA, you must have invested at least €2,600 in the past year. An expenditure is considered an investment only if it costs more than €450 and is used over multiple years, such as a laptop, camera, or printer. If you add up all expenses above €450, you must exceed the threshold of €2,600.

At the end of the year, you can assess whether you meet this threshold. If you fall just short of €2,600, it may be advantageous to make investments for the next year now. If you are certain you won’t reach it, consider making the investment in January to increase your chances of benefiting from this scheme in the next calendar year. Try to invest as much as possible in one year.

Have you made investments in December that might have been better placed in January? Consult with us for advice.

Some points to consider:

  • A passenger car is not considered an investment for this scheme.
  • If you have to pay VAT, all the amounts mentioned above are exclusive of VAT.
  • If you are exempt from VAT or use the VAT Small Entrepreneurs’ Scheme (KOR), all the amounts mentioned above are inclusive of VAT.
  • The specified amounts are specific to the fiscal year 2023. Different threshold amounts may apply to other years.