Sales Tax - VAT

Sales tax – VAT
Sales tax - VAT Is a difficult matter for many entrepreneurs and individuals, while there are so many opportunities for the entrepreneur. It goes without saying that you do not file an incorrect tax return, apply prohibited tax constructions or keep sloppy administration. When you delve into tax matters, or receive expert tax advice on tax regulations and laws, there are important benefits to be gained and you are protected against sanctions, fines, legal proceedings and the like.

Our reliable expert tax specialists, who all have years of experience, see every opportunity. We turn these opportunities into benefits for our customers and protect them. Often this has immediate results, so that the financial position improves. All our tax specialists have years of experience and the mr. title.

What is VAT?
VAT (sales tax) is a tax that everyone in the Netherlands has to deal with. The child who buys sweets from his pocket money, the parent who gets the daily groceries or, for example, the student who buys his textbooks. All these purchases must be taxed. These people do not have to pay this themselves. The entrepreneur does this and therefore the VAT is (almost always) already included in the price that is offered.

What do you pay VAT on as an entrepreneur?
VAT means; value added tax, or sales tax. VAT is a better term, because it is intended that only tax is paid on the value that the seller adds to the product or service. In order to achieve this, the seller is usually also entitled to deduct the VAT, which he himself has had to pay on the business purchases.

Who has to submit a VAT return?
This tax is a tax on the turnover of the company. Only entrepreneurs who are entrepreneurs for VAT have to pay VAT. There are some exceptions. If there is only a small turnover within the calendar year, an entrepreneur can be exempted from VAT, also known as the small business scheme.

The small business scheme or KOR for companies with a lower turnover.
This scheme (KOR) is an exemption, which is included in the Sales Tax Act as a tax reduction for entrepreneurs who do not have more than € 20,000 turnover in a calendar year. This scheme has been created for all types of entrepreneurs, whether natural persons or people (alone or in combination with), and legal entities or companies. An entrepreneur must participate in the KOR for at least three consecutive years. This is to prevent large investments being made in the meantime, whereby people then want to deduct the input tax. If the entrepreneur no longer meets the conditions of the KOR within these years (e.g. make more than € 20,000 turnover). Then the scheme expires, the entrepreneur is obliged to declare this himself to the tax authorities.

VAT Exemptions
If an exemption is granted, the entrepreneur does not have to pay VAT on his turnover. The exemptions are available for a number of sectors where it is not socially desirable to levy VAT, or where it is difficult to determine which rate must be paid. These include, for example:

• Sectors that used to belong to the government; (such as radio and TV services and postal services.)
• Sectors that have a major interest in society; (Health care, youth work, socio-cultural institutions and sports institutions.)
• Certain liberal professions such as doctors, journalists and composers; or
• Certain financial services such as payments, loans and insurance.

Disadvantage VAT exemption.
There is also a downside to an exemption. In that case, the entrepreneur is also not entitled to deduct the VAT, which is paid on the costs of the purchase. Entrepreneurs who do pay VAT on their turnover do not pay anything themselves because of the right to deduct. They receive VAT from the customer and hand it over to the tax authorities, then they receive the VAT they paid themselves back from the tax authorities.

Entrepreneurs who do not pay VAT on their turnover are left with VAT on their purchasing costs. The entrepreneur can choose to fully deduct these costs from the price. If this is not settled or only partially, the entrepreneur pays (part of) the VAT himself. An exempt entrepreneur is therefore the one who actually pays the VAT, just as a consumer does.

How much sales tax or VAT should be charged?
There are differences in the VAT to be levied. The distinction that is made is shown below:

• 21% VAT: The high VAT rate is 21% (This is the general rate used)
• 9% VAT: There is a low VAT rate of 9% for mainly basic necessities. Think of food, medicines, over-the-counter medicines. For example, a hairdresser, a drugstore, a greengrocer, etc.
• 0% VAT: There is a VAT rate of 0% for goods or services supplied to another EU country. For example, international passenger transport, or a batch of flowers that is delivered to a company in another EU country.
• VAT exemption: Exemption from VAT is also available for some professions, for example for journalists, in education or providing excursions.

Submit a VAT return per quarter, month or year?
If an entrepreneur has to pay less than € 1883.00 per year VAT, there is a VAT return 1 time per year. These entrepreneurs are also entitled to the small business scheme in terms of benefits with regard to the VAT return.

Entrepreneurs who have to pay more than € 60,000.00 VAT per year pay monthly VAT.  All entrepreneurs who have to pay between € 1883.00 VAT per year and € 60,000.00 VAT per year pay the VAT every quarter.

Questions from entrepreneurs about sales tax The following questions that we regularly receive from entrepreneurs about sales tax:

• What sales tax consequences occur when driving a company car or in private?
• Is sales tax and/or transfer tax due on the purchase and/or sale of real estate?
• VAT consequences of letting real estate?
• VAT consequences when transferring a company?
• What are the VAT consequences when selling the company?
• What are the VAT consequences in the event of a (major) renovation of a business premises?
• What are the VAT consequences for staff parties and (consumer) benefits to staff?
• VAT consequences of the purchase, sale and rental of a holiday home?
• VAT consequences when purchasing solar panels?
• When do I have to declare my turnover?

There are many other tax questions and issues asked to our tax professionals than the above regarding sales tax. You can also submit all these questions to us. We provide clarity and solve your tax issue or question.

Why a tax specialist from AGA Fiscalisten with sales tax - VAT?
AGA Fiscalisten stands for high-quality expert tax advice. All our tax specialists are senior tax specialists, have years of tax experience, and have graduated from the university in tax law and hold the title "mr.".

A (senior) tax specialist specializes in tax law while a tax advisor has only completed tax courses. A tax advisor has much less knowledge than a tax specialist and often makes mistakes with potentially significant financial consequences. It is wise not to settle for a non-qualified tax advisor, but to engage an expert senior tax specialist. This way you avoid problems, fines or procedures and you do not miss out on tax benefits due to advice that is not sufficiently expert.

High quality tax specialist; Master title mr. and years of experience
All our tax specialists have years of tax experience and the "mr." title. The most recent developments and changes concern taxation and all relevant legislation is studied and discussed by our tax specialists. This gives us the opportunity to clarify all the problems and issues about taxation. We achieve the best possible result for our customers. Tax advice, tax returns, financial advice, legal advice or discussion partner, AGA Fiscalisten will arrange it for you!

Contact AGA Fiscalisten
The tax specialists of AGA Fiscalisten can do a lot for you, from an answer or advice to your tax questions to guidance throughout the entire process. If you have any questions or issues and would like high-quality tax advice, please contact one of our expert experienced tax specialists for an intake interview free of charge and without obligation.

NEED TAX ADVICE?
Call: 040-8489888 1st free and non-binding intake interview. Available by phone: Monday to Friday between 09.00h and 20.00h) We can also be reached by e-mail: info@agafiscalisten.nl or via the contact form on the right side of our website.

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