You file a sales tax return in a digital environment of the tax authorities. Read all about how to file a sales tax return for the first time here.
The small business scheme (KOR)
Do you have a sole proprietorship, partnership or partnership and do you make little turnover? Then you may be eligible for a reduction in the VAT to be paid. This is called the small business scheme.
This scheme applies if you have a maximum turnover of € 20,000 per calendar year. It does not matter whether your company has legal personality or not. You can also participate with a BV. If you are wondering how do i figure out sales tax then making use of the tax calculator is important.
Doing business abroad and VAT
Do you do business with foreign trade partners? Then it gets a bit more complicated. If you export to EU countries, you generally do not charge VAT. You do charge VAT if your customers are private individuals and do not submit a VAT return themselves.
You can do this yourself in the first instance. Fill it in, put it away for a while, and look at it again. Sounds so logical, but a mistake is easily made. Another (cheap) option is to have the tax return checked by another self-employed person. Check each other’s tax return. Are you really off track? Enough accountants and administrative offices willing to help you.
Avoid (double) VAT fines
You probably now know that you can avoid a fine by submitting your declaration in time. The first time you forget the return, you can use the seven-day leniency period of the tax authorities. You will then receive an absenteeism report. Are you late again? Then you can expect a default fine of 65 euros. Fine? Run to your computer, fill it in and pay. If you subsequently pay too late, the tax authorities will charge a fine of 3% of the VAT to be paid with a minimum of 50 euros and a maximum of 5,278 euros (in 2019). From taxfyle you can have the best deal in tax submission now.
Small business scheme
As a small business you can save on VAT if you can claim under the small business scheme (KOR). The small business scheme is interesting for entrepreneurs who have to pay less than 1,883 euros (in 2019) in VAT. If, as an entrepreneur, you have to pay between 1,883 and 1,345 euros (in 2019) in VAT, you can save on VAT. If you expect to have to pay less than 1,345 euros in VAT for several consecutive years, you can even request an exemption from the VAT obligation. You can request this in writing from the tax authorities. Want to know more about the KOR? An extensive article about this will be published online next week.
Double VAT rate
Some sectors have to deal with a ‘double VAT rate’. Don’t worry, you don’t have to pay double. For example, if you work as a hairdresser, cutting and applying hair extensions falls below the 9% rate. The materials used, such as the extensions, are subject to the 21% rate. So be aware of the VAT rates in your industry.