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How to: VAT return as a teacher

Congratulations! You are not only a teacher, but also an entrepreneur! Help, all I ever wanted was to share what I know… No worries. We are here to guide you through and help you with some tips and tricks.

1 keep it up-to-date

First thing to know: when you declare your VAT returns to the tax authorities (belastingdienst) on time and keep your administration up-to-date , it’s easy as 1-2-3.

2 income and sales tax

What is the difference between income tax (inkomensbelasting) and sales tax (omzetbelasting)? Just like everyone who earns money in The Netherlands, you pay income taxes.
For the service you provide – the knowledge you share and are paid for – you pay 21% of taxes to the tax authority of your country: sales tax. In case of The Netherlands this is the Belastingdienst. You can see this part of your earnings as money that has never been yours. The following is therefore important: make sure to include 21% VAT in the price you set for your listed talent.

*Attention: living and working in a country other than The Netherlands, you might find yourself under a different law. Please find out the right way to pay your taxes with help from the national tax authorities.

3 when do I declare and pay my VAT returns?

Every year you file your income tax returns. As a teacher entrepreneur, every quarter of the year (every three months) you should also file your sales tax returns, which is 21% over the amount you earned while teaching. You declare your VAT returns in the month after the set of three months, so for the first quarter of the year you have till April 30th. Find help with your declaration of VAT returns here.

4 should I file my tax returns when I didn’t earn money in the past quarter of the year?

Yes, you should always declare your sales income and tax returns. If you didn’t make any revenue, you still have to declare this. Possibly you made costs for your small enterprise over which you paid taxes. In some cases it is possible to pay less taxes because of rebates. Find the possible rebates following Dutch law at the website of the Belastingdienst. Be aware that not filing your quarterly tax returns comes with a fine of 65 euro.

5 tip! In some cases, you can pay less or no taxes.

From January 2020, there will be a new ‘kleineondernemersregeling’. This is an arrangement for entrepreneurs who are settled in The Netherlands and make a revenue lower than 20.000 euro per (calender) year. Check whether this regulation applies to you through a tool on www.belastingdienst.nl: https://www.belastingdienst.nl/wps/wcm/connect/nl/btw/content/kan-ik-gebruikmaken-van-de-kleineondernemersregeling.


Example:
You set a price of 20 euro an hour, this is what you would like to earn per hour. However, because of your sales taxes, you will have to pay 21% of this amount to the tax authorities. Therefore raise the price of 20 euro to 20 euro + (21% of 20 euro) = 24.20 euro. Make sure to note in your pricing that this is the price including VAT, or including btw.


Find more information on the website of the Dutch Tax Authorities: www.belastingdienst.nl. It is not possible to deduct any rights from this article. Also, this is no tax advice. ChooseYourTeacher.com is not responsible for the tax returns of our teachers: our teachers are responsible for their own tax administration and to declare their tax returns in time.