Should I register my business? Major changes in the field of online commerce

Sales of goods and services through digital sales platforms such as Vinted and Marktplaats are constantly growing in the Netherlands. About 350 new advertisements are posted daily on Marktplaats alone! If previously such sales were almost invisible to the tax authorities (Belastingdienst), this is no longer the case. The new European directive, DAC 000, obliges online platforms to transmit sales data to the tax authorities.

In accordance with the European Directive on the exchange of data on digital platforms (DAC 7), trading platforms such as Marktplaats and Vinted have recently been required to transfer sellers' personal data to the tax authorities. Currently, Belastingdienst only receives information about those sellers who have completed more than 30 transactions per year or have generated a total revenue of 2000 euros or more.

What awaits online traders?

Information about previously unnoticed income becomes available to Belastingdienst. In the Netherlands, by law, any income is subject to taxes. Tax authorities so far say that this is not aimed at random sellers who occasionally sell items that have become unnecessary, but only at those who conduct business on the Internet. However, sellers of online platforms who come to the attention of Belastingdienst risk receiving fines for tax evasion. An additional risk is borne by those who, by trading on the Internet, receive government benefits: depending on the income received, they may be required to return previously received money (benefits).

It should be noted that not only online sales platforms are required to share information with Belastingdienst, but also online home rental, car rental and service offering platforms such as Airbnb, Natuurhuisje, Snappcar, Zoofy.

So, it is becoming increasingly difficult to hide income from the tax authorities. In order not to receive a fine, income must be declared.

How to declare income from online sales?

Income received by residents of the Netherlands (except that received from ownership of 5% or more of companies and from ownership of savings, property and investments) is declared in Box 1 of the tax return. In the same Box 1, you must also enter income from online sales, in the “Income from other work” section. After filing a declaration, tax is charged on this income, however, if the proceeds are small, then the tax amount is small, and sometimes you don’t have to pay anything at all.

But what about those who earn decent money on the Internet? Is it possible to legally reduce payments to the budget?

How can business registration help?

Entrepreneurs in the Netherlands have significant tax benefits; if certain conditions are met, we can talk about tax deductions of thousands of euros. What are these conditions? Does it make sense for you to register a business? How to become an entrepreneur in the Netherlands? Find out about this during your consultation!