Webshops and tax
Written by: Joost De Leeuw
Running a webshop in the Netherlands is an attractive way of earning an income: you are your own boss, you can work in a field you are interested in, you can be an entrepreneur every day, trying to improve and grow your business, and the world is your marketplace.
Exactly because the world is your marketplace, there are certain tax complications. You deal with income tax, sometimes import and export, and almost always with VAT. Do you sell new of second-hand goods? Do you customers pay up front? Do they ever return your products? All such questions are relevant to your VAT position.
If you supply a product to a consumer outside the EU, there is no need to charge VAT. If you supply a product to a consumer inside the EU, you charge Dutch VAT. If, however, you sell so much to a certain EU member state that you pass a certain threshold, you will need to register for and pay VAT locally. This is quite a burden in some countries, but we have contacts in all EU member states and can help you register and file returns. Here is an overview of distance sales thresholds.
For income tax, the rules are more straightforward, but because they are not synchronized with VAT regulations, this might still cause confusion. We are happy to advise and assist. Feel free to get in touch for an initial consultation.