Taxation

1. Contacting the Inland Revenue
You should notify the Inland Revenue as soon as you know when your company plans to start business. If you start a sole trader, a partnership, a limited partnership or a partnership under common firm, you can register your company for the Inland Revenue and the trade register at the same time. You can do this at the Chamber of Commerce. You can prepare for the registration with the Joint Registration form (pdf). 

If you start another legal form, you will still have to notify the Inland Revenue. The relevant form 'Opgaaf Gegevens startende onderneming' (Statement of information for starting up a business) is available from the Inland Revenue site. 

It is to your advantage to provide this information at an early stage: new companies which have made investments in their business often receive money back following their first VAT return (Value Added Tax). This is because a new business often pays more VAT in the beginning than it has actually charged.

Start-up businesses are regularly visited by an inspector from the Inland Revenue who checks whether the business administration meets the required standards. You can also make an appointment yourself for an 'introductory visit'.

2. What kinds of taxes do you have to deal with?
Businesses may have to deal with four kinds of taxes: 

• Value added tax (VAT)
  It is almost always compulsory for businesses to charge clients VAT (BTW).
• Income tax
  If the Inland Revenue considers you as an entrepreneur, you can benefit from a number of tax allowances. You will then pay less income tax.
• Wages and salaries tax
  If you employ staff, you will be liable to pay wage tax.
• Corporation tax
  If you have a private company with limited liability, you will be liable to pay corporation tax.