Financial tips

This must be done within 1 year after the expiry of the payment term

Reclaiming VAT from non-paying debtors
Are you sure that your clients will no longer pay your invoices? Then you can reclaim the VAT you charged and paid on those invoices from the tax authorities.

Since 2017, the debt is in any case irrecoverable no later than one year after the expiry of the final payment date you agreed with your customer. Have you not agreed a payment term? Then a payment term of 30 days after receipt of the invoice by the customer applies.

You can reclaim the VAT you do not receive in the normal sales tax return.

Ask for a timely VAT refund!
Watch out! Apply for a VAT refund in time. This must be done at the latest in the return for the period in which the one-year period described above expires. Are you too late? Then you are no longer entitled to a refund. You must therefore ensure that you make a proper age analysis of the outstanding claims in each return.

Does your partner work in the company? Then decide how you want to reward his or her efforts.

Your partner works in your company?
There are three ways of rewarding the work of your partner who works in the business.

1. Apply the deduction for collaboration. This is a deduction item, equal to a percentage of the profit. The percentage depends on the number of hours that your partner worked.
2. Pay an employment allowance. The employment allowance is deductible from the company profit, but is taxed on the collaborating partner. Is the remuneration less than € 5,000, then the remuneration is not deductible from the profit and is not taxed on your partner.
3. Let your partner join your company and form a general partnership. By joining the company your partner also becomes an entrepreneur. Your partner may then also be able to use entrepreneur facilities such as the self-employed tax deduction, the SME profit exemption and the old-age pension reserve.

Need any help?
Would you like more information or do you need help in determining which option is best for your situation? Then please contact us.

But pay this only after 1 January to avoid Box 3 tax

AB levy up in 2020
Next year, the AB levy will increase from 25% to 26.25 %. Each dividend you pay out this year will therefore save you 1.25%. However, this dividend will be included in your Box 3 capital as of 1 January 2020. And the saving will be gone immediately, because you will have to pay Box 3 tax.

Dividend still to be paid in 2019
You can avoid this by not paying out the dividend yet. This gives you a claim on your private limited company, which does not fall in box 3, but in box 1. This is a so-called TBS-receivable. You must declare the interest on the receivable as TBS income, but not the receivable itself. You may pay out this receivable to yourself at the beginning of 2020 in order to limit the interest. After that, this money will of course fall under your Box 3 capital. But this is an easy way to save your Box 3 tax but still make use of the low rate of 25% to Box 2 levy.

More information?
Please contact one of us if you would like more information on saving tax by paying dividends in 2019.

This way you can state the correct value in the tax return

Crypto wallets
Crypto currencies like Bitcoin, Monero and Ripple are subject to fluctuation. They are so volatile that you can drop or rise several dozen percent each day.

The banks in the Netherlands issue an annual financial statement, however this is not done with your Bitcoin, Ether, Litecoin and other crypto assets.

In your income tax return, you have to report your assets on January 1. To include the correct amount in your tax return as an individual, we advise you to make a screenshot of your crypto wallets on January 1.

Need help with your income tax return?
We help you with your income tax return. Please contact us for the possibilities and rates.

So pay attention if you work or have your business in another country.

Fixed installation
The tax plan 2020 contains a proposal to include a definition of the term permanent establishment in the income tax, wage tax and corporate tax. Up to now, nothing has been laid down in law about this, but it has been laid down in tax treaties.

In order to combat tax evasion, a definition of the permanent establishment (PE) is now proposed. This will enable a permanent establishment to be set up more quickly in many cases. This VI is important for the profit split of companies and self-employed persons.

The freelancer who works from the beach in Spain, will have a VI in Spain faster than before. There is no need for the so-called 183-day rule anymore.

For foreign companies with employees in the Netherlands, a VI in the Netherlands can also be established more quickly.

Using Habermehl's expertise
It is possible to submit the existence or non-existence of a VI in the Netherlands to the tax authorities in advance. Habermehl has a lot of experience in this and can advise you. Please feel free to contact us.

Income from criminal activities taxed but costs not deductible!

Crime does not pay tax
Taxation is amoral; that is, the tax authorities do not look at how the income is earned. Income from criminal or punishable activities is therefore simply taxed. But the costs you make to earn this income are not deductible.

Think of the raw materials for the production of drugs, the car expenses of the drug courier or the bookkeeping of the launderer. These costs are not deductible while the income is fully taxed. This can result in you paying more in taxes than you earn. Another reason not to engage in these criminal activities. Crime does not pay tax.

What else is not deductible?
Stab tokens
Fines imposed by a criminal court
Settlements to avoid criminal proceedings
Disciplinary fines
Weapons and ammunition without permit
Animals banned for aggression
Deprivation claim in the event of conviction
If you are convicted of criminal offences, a deprivation claim will often be submitted. This means that you may pay the proceeds back to the state. However, you will have to pay tax on these proceeds. A possible loss is only deductible to a very limited extent.

Crime doesn't pay...at least not fiscally.

Pension benefits
The taxation of (pension) benefits usually used to take place in the country of residence, i.e. the country where the taxpayer lives. In the latest treaties, however, the taxation of pensions is increasingly assigned to the source country, i.e. the country from which the pension originates.

The reason for this is that the source state also provides a facility on the pension. This means that the pension premiums are deductible and therefore provide a deduction item. It is then also logical to have the payments taxed where the premiums are deducted. This is therefore the case in the most recently concluded treaties.

You should therefore take into account that in the coming years more and more treaties will be concluded under which the taxation of pension payments is assigned to the source country.

Requesting pension benefits?
Please contact us if you have any questions about pensions and taxation. We will be happy to help you.

Then make sure you have a good rating

Give employees shares or allow them to buy shares?
Are you planning to give an employee shares in your company or have him/her buy them? Make sure these shares are properly valued. If you do not, any gain on these shares may be subject to payroll tax.

When taxed with payroll tax?
The Supreme Court is currently considering a case in which the AG recently issued an opinion. In this case, shares were transferred at nominal value to an employee. These shares were sold 2 years later for 500 million euro. The tax authorities have successfully argued that this profit is taxable with wage tax.

Any share distribution can therefore be subject to payroll tax, especially if the shares are transferred at too low a value. If you have made a proper valuation of the shares and sell the shares to your employee at their actual value, there will be less of a question of salary.

In this case, the required tax return had not been filed either. As a taxpayer you are already 1-0 behind, due to the reversal and increase of the burden of proof. So always file the correct tax return.

Need advice?
Are you thinking about giving or letting an employee buy shares and would you like advice? Then please contact us.

Not even if it has a negative balance

Deceased loved one?
Has a loved one of yours died and are you an heir? Then you have three options:

- you accept the inheritance
- you reject the legacy
- you accept the benefit

Never reject an inheritance
You can safely accept the inheritance if you are sure it is positive. If you know that the inheritance does not have a positive balance, then you can reject it. But by doing so you are putting this problem on the shoulders of others. If you have rejected the inheritance others will take your place. For example because you have rejected the inheritance your children will take your place and they will have the same problem. So never reject an inheritance. How to avoid problems? By accepting the inheritance beneficent. This way you can accept the inheritance but if the balance is negative you are not liable for the debts.

You can reject an inheritance or accept it favourably through the court.

VAT identification number
Do you have a one-man business or are you a self-employed person? If so, you have received a letter from the Tax and Customs Administration containing your new VAT identification number (VAT ID). This number replaces your VAT number.

The old VAT number could in fact be traced back to the Citizen Service Number (BSN). This is personal data which is sensitive to privacy. New VAT identification numbers have been issued in order to change this.

You use the VAT ID for communication with others. You therefore state this VAT identification number on your stationery, website, etc. and also on your invoice. And therefore also on your invoice!

VAT number
The old VAT number is now called the turnover tax number. The VAT number is used for VAT declarations and ICP declarations and all other correspondence with the tax authorities.

You use the VAT ID for communication with others. You state this number on your stationery, website, etc. and therefore also on your invoice. And therefore also on your invoice!

Any questions?
If you have any questions about the VAT return or if you are considering outsourcing your administration, don't hesitate to contact us.

Sell the car for too low a price to yourself
Has your 0% addition for your Outlander PHEV or Tesla Model S come to an end after 5 years? Then it can be very lucrative to sell the car to yourself for a much lower amount and thus save a lot of VAT. In this way, you can bring the car to your private life for a low amount.

Sell the car for too low a price to yourself
If your private limited company has bought a car for you, this car will be worth a lot less after one or two years. This is also reflected in the residual BPM, which after one year is only 68% and after two years 53 %. The car can be transferred to private ownership at the actual value.

However, for VAT purposes, sales tax is calculated on the fee. If you buy the car from your private limited company for the residual BPM and a small mark-up of €3,000, you will only pay €520 in VAT. This is because the reimbursement is so low.

The actual value is higher and you then make a hidden profit distribution. However, a dividend tax return must be filed for this.

Example
Book value car € 65,000 (excluding VAT)
Actual value/
purchase price car dealer € 60,400 (including vat)
Residual value BPM € 12.000
Actual value excl. VAT € 52,000
Sale to director for € 15,000 (including VAT)
VAT due
21%/121%x€ 3,000 = € 520
Instead of € 8.400. That makes a difference of € 7.880!

No correction possibility
The VAT tip mentioned above is possible because there is no statutory correction possibility for levying VAT according to the market value (WEV) in the event that the transaction price deviates from this WEV. The law is based on the objective concept of "compensation", Article 8.1 of the Turnover Tax Act 1968.

If there is no such remuneration or if the remuneration is purely symbolic, the WEV may be levied, see Article 8.3 of this Law.

The transfer of a car to private ownership from a BV to its DGA is, in principle, a normal commercial transaction, which is not artificial as such. From HR 29 June 2012, ECLI:NL:HR:2012:BR4525 it appears that a low, non-symbolic price is no reason to assume abuse of rights if there is otherwise a real economic transaction.

The Arnhem Court of Appeal of 26 June 2012, ECLI:NL:GHARN:2012:BX0556 even qualifies the inspector's adherence to the market value as the basis for levying VAT instead of the agreed (lower) fee as "litigating against one's better judgement".

It sometimes happens that a tax inspector objects to the present procedure. This has to do with a lack of knowledge. It is our experience that this way of working is accepted in the majority of cases nowadays.

No formal dividend payout!
In another case in which a BV sold a car to its DGA for the residual BPM, the tax inspector levied the sales tax on the basis of the actual value of the car. For the difference between the transaction price and the actual value, the BV had granted a net dividend, formalized in the general meeting of shareholders. This is part of the remuneration for the car on which VAT was rightly levied (Court of The Hague 22 August 2013, ECLI:NL:RBDHA:2013:11083). What went wrong here was that there was no question of a disguised dividend, as indicated above, but of a formalized dividend.

Directors' liability
To avoid potential directors' liability, withdrawing the car from the company as a (disguised) dividend must be financially sound. In any event, this should not be considered if the BV is in bad weather.

Do you want to save VAT?
Sell the car at an underpriced price to yourself and save VAT. Habermehl explains the best way to do this. Contact us by e-mail or call 035-6285753.

But you don't know if there are any debts? Watch out!
If so, accepting the inheritance on a benevolent basis may be the best choice.
But what is that and how do you do it?

As an heir, there are three different ways to deal with an inheritance.

Pure acceptance
Reject
Beneficial acceptance
Which one should you choose?

Pure acceptance
When you accept the inheritance purely, you accept it completely and you inherit all possessions and debts together with the other heirs. You are then also liable for possible debts (together with the other heirs who have accepted purely).

You can accept an inheritance purely if you are sure that there are no debts or if you know that the assets are worth more than the debts.

Reject
If you reject an inheritance, you have no right to the assets. You get nothing from the estate, including personal property but you are also not liable for any debts.

You reject an inheritance if you do not wish to receive any of the property or if you do not wish to be liable for any debts.

Beneficial acceptance
If you accept an inheritance in a benevolent way then you are entitled to the possessions but you do not have to contribute to the debts. Only when the legacy has more possessions than debts, you have to accept this. If it turns out that there are more debts than possessions, then you still reject the inheritance.

You accept the benefit if you suspect or are not sure that the debts are higher than the assets.

How to accept for profit?
If you do want to accept the assets benevolently, you must inform the court of your choice. This has to be done in writing at the court of the area where the deceased lived.

For more information, see this link.

Need any help?
Do you want help accepting an inheritance or do you want help with your inheritance tax return? Then please contact us.

Apply for the 30% scheme

Foreign employee
Due to the shortage on the Dutch labour market, more and more employers are recruiting employees from abroad. This is encouraged by the 30% scheme, under which 30 percent of the salary may be paid tax-free.

30% control
The 30% scheme may be applied for 5 years if the following conditions are met.

The employee is recruited from abroad.
He or she is employed by you or sent to work for you.
The foreign employee has lived more than 16 months of the two years prior to his/her first work in the Netherlands at a distance of more than 150 kilometres from the Dutch border (exceptions possible).
The employee has specific expertise, which translates into a salary of at least € 37,743.
A 30% scheme has been applied for and a decision has been issued by the tax authorities.

Any questions?
If you have any questions about the 30% scheme or other international matters, please contact us. We will take the work and worries off your hands.

If you are importing goods from the United Kingdom
With the upcoming Brexit on 31 October 2019, the UK is leaving the EU. This has important implications for VAT. When importing goods from the UK, you must remit the VAT at the same time as the import duties. However, there is a possibility to shift the charge of import VAT to the declaration. If you apply for a Article 23 permit in time, you may include the VAT in your own VAT return.

Article 23 Authorisation
Until 31 October 2019, the sale of goods from a Dutch entrepreneur to an entrepreneur in the United Kingdom is an intra-Community supply. This means that the supply is taxed at the zero rate. The condition is that the buyer in the United Kingdom makes an intra-Community acquisition. As a result, you do not have to pay any VAT.

Because the United Kingdom will no longer be part of the European Union from 31 October 2019, a purchase of goods will no longer be an intra-Community acquisition, but an import of goods.

By applying for an article 23 permit you can transfer the payment of VAT to your own VAT return. Because you are allowed to deduct this VAT directly as input tax, you do not need to pay it in advance, which gives you a significant cash advantage.

What conditions do you have to meet?
As an entrepreneur, you live in the Netherlands or are established there.
You regularly import goods from non-EU countries such as the United Kingdom or the United States.
A separate administration is kept which easily shows how much VAT you have to pay when importing the goods.

Apply for an Article 23 permit?
Would you like help applying for an article 23 permit? We are happy to help.

Deadline 1 October 2019
If you paid VAT in another EU country in 2018, you cannot deduct this VAT in your standard VAT return. Fortunately, you can reclaim this VAT from the Dutch Tax Administration if you meet the conditions.

Reclaiming VAT abroad
If you paid VAT in another EU country in 2018, you cannot deduct this VAT in your standard VAT return. Fortunately, you can reclaim this VAT from the Dutch Tax Administration if you meet the conditions.

Firstly, your company must be established in the Netherlands. Secondly, you have not declared VAT in the EU country where you are reclaiming the VAT. And you use the goods and services for business activities that are subject to VAT.

If you meet these three conditions, you may get a refund of the VAT you paid in another EU country. For the VAT paid in 2018, you must submit a request for a refund to the Dutch tax authorities before 1 October 2019. If you do not reclaim this VAT on time, there is a chance that the other EU country will not consider your refund request.

Requests for a refund of foreign VAT for 2018 will only be accepted by the Dutch Tax Administration if the VAT amount is at least € 50. If the amount is lower, you must reclaim the VAT in the country where it was paid

Increase the retirement commitment with this interest

Have you converted your pension provision into a PSO?
As of 2017, it is no longer possible to build up a self-administered pension. Have you converted the pension provision into an old-age obligation? Then you must increase this ODV annually by a certain percentage.

The interest rate is set out in Article 12.3a of the 2011 Payroll Tax Implementing Regulation (URLB). The market interest rate is the arithmetic average of the U-yields over the months of the previous calendar year, as published monthly by the Centre for Insurance Statistics of the Dutch Association of Insurers. See also: U-yield.

For 2019, the market interest rate is set at 0.269%.

Then watch out for a BPM or MRB charge with a fine!
Every resident of the Netherlands must pay tax on the purchase and possession of a car. But when are you considered a resident? And how do you avoid these taxes?

Resident of the Netherlands
You are a resident of the Netherlands and you need to register in the BRP (Personal Records Database). Are you in the Netherlands for more than 4 months within a period of 6 months? You will have to register here in any case. Are you here for a shorter period? In that case you can also be registered here if you work or study in the Netherlands.

As a resident of the Netherlands, you pay BPM when you buy a car, and you pay MRB if you have a car registered in your name.

Not a resident?
Are you not a resident? Then you do not pay BPM or MRB. But beware: the tax authorities can still see you as a resident of the Netherlands, while you think you are not. Your residence for tax purposes may be the Netherlands, even if you think you live abroad.

Exemption BPM and MRB
Are you a resident of the Netherlands driving a car with a foreign license plate? Then you have to pay MRB and possibly also BPM, but you can get an exemption for BPM and MRB.
There are several exemptions for a car with a foreign license plate:

Exemption for short-term use
Employee exemption
Employer exemption
Temporary stay in the Netherlands
Entrepreneurial scheme
Make sure you apply for this exemption in time, otherwise you could be charged a hefty penalty.

Apply for an exemption for foreign license plates?
Do you have a car with foreign license plates and do you need help applying for an exemption? Then please contact us.

How to avoid fines

As an entrepreneur, you obviously have your administrative and fiscal affairs taken care of by an expert and well-trained advisor. If there are still errors in the administration, no penalty can be imposed on you as an entrepreneur.

Fines Tax Administration. Who's guilty?
For the imposition of a fine there must be intent or gross negligence. If you have your declarations done by a tax consultant, then you cannot be blamed for this.

It is important that you choose a good advisor and work well with them. If you do not exercise the "necessary care in the choice of advisor" a fine can be imposed. Also if you do not provide him or her with the right information during the cooperation, this can lead to a fine.

Choice of tax advisor
So choose your tax advisor with care and work well with him or her!

Check for averaging!
Did you receive your tax assessment around 1 July? If so, check whether averaging your income still results in a refund.

Mediation is interesting
If your income varies, there is a chance that you have paid too much tax. Apportionment is interesting and can give you a tax refund if you have had widely varying income in box 1 in three consecutive calendar years.

If the tax refund recalculated through averaging amounts to more than the threshold of € 545, you will be paid. However, the tax assessments for these three years must have been finalised. The request for averaging must be submitted within 36 months after the assessments have become final.

We can make the calculation
We can make the calculation for you. Interested? Please contact us.

You're letting us do the returns?
If so, we will always check whether averaging makes sense!

In your income tax return, you must declare all of your assets and debts if they are worth more than € 30,360. Do not forget to state your share in the reserve of your Association of Owners (VvE).

Share of reserve fund Claiming the VvE in Box 3
As the owner of an apartment or a shared plot, you are often an (obligatory) member of an Owners' Association (VvE). This association often has a reserve. As a member, you are obliged to contribute to such a reserve fund, such as a general reserve or a maintenance reserve. This contribution is collected by means of a monthly or annual contribution to the VvE. This reserve is used to pay for communal renovations or maintenance.

Because of this contribution, your share in the reserve fund is often considerable. You no longer have access to this money and when you sell the property, you sell your share of the reserve with it.

You must declare the value of your share in this as property in Box 3. Even though this may seem unjust because you no longer have access to the money yourself.

The Supreme Court ruled back in 2010, against the advice of the Advocate General, that you must declare this as property in Box 3. So ask your Owners' Association for a statement of your share in the reserve fund.

This is a public official
Many people still have a notary handle the settlement of an estate, including the inheritance tax return.

Why not by a notary?
A notary public is a public official according to the law. He serves the public interest. If he prepares an inheritance tax return, he will always remember the oath he took, which states that he will behave in accordance with the laws and perform his task impartially.

He will also keep the public interest in mind when checking inheritance tax assessments. This need not lead to the most advantageous solution for you.

What could go wrong?
For example, we received an inheritance tax return that contained an obvious error, to the advantage of the taxpayers. We checked the declaration and it was submitted correctly. The error lay with the tax authorities. We told our clients about this error but did not tell the Tax Authorities. We do not have to actively inform the Tax Authorities about this.

A civil-law notary should have reported this error to the Tax Authorities. This would have cost the client extra inheritance tax. There is of course a chance that the Tax Authorities will find out and impose an additional assessment. But how big is that chance?

Do you wish to file an inheritance tax return?
Do you need to file an inheritance tax return? Then we can help you further. Please feel free to contact us.

This is the replacement of the KOR in VAT
As of January 1, 2020, the small-business rule (KOR) in VAT will be replaced by the turnover-related exemption from VAT (OVOB).

What is the OVOB?
The turnover of the entrepreneur is the starting point. If your turnover is less than € 20,000, you can opt for the OVOB. That means:

You do not and may not charge VAT to your customers anymore;
you can no longer deduct the input tax;
You no longer need to submit a VAT return.
Which turnover counts?
This concerns the turnover for the supply of goods and services in the Netherlands and intra-Community supplies from the Netherlands.

Who does this apply to?
The OVOB applies to every entrepreneur, including the BV. The KOR only applied to the one-man business and the general partnership.

You can apply for this from 1 June 2019. If you do this before 20 November, you will be able to take advantage of this scheme from 1 January 2020.

Interesting for you?
Want to know if this is interesting for you? Let us find out.

So object to your own declaration

Statutory auditor not a VAT entrepreneur after all
In recent years, a supervisory director was a VAT entrepreneur. In a recent judgment, the Court of Justice of the EU ruled that a member of the Supervisory Board is not a VAT entrepreneur.

It concerns a recent case in which a municipal official is also a member of the supervisory board of a foundation. According to the civil servant, he does not perform the activity independently. The Court of Appeal of 's-Hertogenbosch referred the case to the Court of Justice of the EU for a preliminary ruling.

According to the Court of Justice of the EU, the official acts on behalf of and under the responsibility of the Supervisory Board. Furthermore, the Court of Justice of the EU considers it important that X does not bear an economic business risk, as he receives a fixed remuneration which does not depend on his participation in meetings or on his actual hours worked.

Object
Have you filed a VAT return for activities as a non-executive director and not taken advantage of the KOR scheme? Then you can object to your own tax return and reclaim the VAT. Do you need help? Please contact us.

Age reduced to 21

Minimum wage increased
From 1 July 2019, workers aged 21 and over will be entitled to the full minimum wage. The minimum wage for workers aged 18 to 21 will be increased.

Age By month By week By day
21 years and older € 1,635.60 € 377.45 € 75.49
20 years € 1,308.50 € 301.95 € 60.39
19 years € 981.35 € 226.45 € 45.29
18 years € 817.80 € 188.75
17 years € 646.05 € 149.10 € 29.82
16 years € 564.30 € 130.20 € 26.04
15 years € 490.70 € 113.25 € 22.65

Full-time working week in company 21 years and over 20 years 19 years 18 years 17 years 16 years 15 years
36 hours € 10.49 € 8.39 € 6.30 € 5.25 € 4.15 € 3.62 € 3.15
38 hours € 9.94 € 7.95 € 5.96 € 4.97 € 3.93 € 3.43 € 2.99
40 hours € 9.44 € 7.55 € 5.67 € 4.72 € 3.73 € 3.26 € 2.84
Questions or more information?
Do you have a question or want to know more? Then please contact us.

Pay attention to timely commencement of benefits!

Are you the owner of a stamrecht-BV? Then you have to buy a periodic payment from the standing right capital. You have to do this at the latest at the age of 65 or AOW-age.

Payroll tax claim

In the past, you paid a severance payment tax-free into an 'Stamrecht-BV'. No wage tax was withheld on this capital. The future payments are therefore still subject to wage tax.

Final date of periodic payment

Therefore, you have concluded a standing right agreement with the BV. This agreement states when the BV must pay you the periodic payment.

According to the law, these benefits must start at the latest on the AOW pension age or the date you turn 65.

Aftertax

If you do not purchase a periodic payment by the deadline, the Tax Administration can impose an additional assessment for the wage tax that should have been paid. In that case the Tax Authorities themselves can impose an additional assessment for the wage tax that should have been paid.

The tax authorities can also impose an additional assessment for corporate income tax on any release profit enjoyed because the standing right provision is used to purchase a periodic payment.

How do you participate?
The Secretary of State has classified some of the objections to the Box 3 levy for 2018 as mass objections.

What does mass appeal mean?
The mass objection procedure means that the Tax and Customs Administration, together with various other parties, selects a number of objections and puts them to the tax courts. Once the ruling of the court is irrevocable, they issue a collective ruling on all objections that have been included in the mass objection procedure. If your objection is included in the procedure, you do not have to go to court yourself. This will make a considerable difference to your costs.

How do you participate in the mass objection procedure?
You must file a timely objection to the 2018 income tax assessment. You must do this within 6 weeks of the date on the assessment. Are you too late? Then you do not participate.

You object because the Box 3 levy is an "infringement of the right to property", is in violation of Article 1 of the ECHR or the prohibition on discrimination in Article 14 of the ECHR.

Any other reason?
Do you have another reason for objecting? Then you will not take part in the mass objection procedure.

Assistance with objection?
Would you like help with your objection? Please contact our tax specialists. They will be able to advise you on the chances of success and on the proper drafting of a notice of objection.

Make sure your correct address is known to the tax authorities

If you are going abroad for a longer period of time, make sure that the tax authorities can reach you or that your mail is forwarded properly, otherwise you could be faced with high assessments and fines upon your return. Or your passport may not be renewed.

Once entered, the address stays entered
This happened in a recent case. A taxpayer moved abroad in 2011. He sent a letter to the Tax Authorities to terminate the benefits because he was going to emigrate. In the letter he gave his parents' address to which the confirmation of the termination of the benefits was to be sent.

After this the Tax Authorities sent more letters to this address, including a questionnaire. Because the inspector had no other address than the address of the parents of the tax payer, they noted this address as the forwarding address.

Despite reminders, the taxpayer never responded to the questionnaire, probably because these letters never reached him. The Tax Authorities therefore imposed assessments with penalties and also sent these to the known address.

Passport renewal refused
In 2018, taxpayer wanted to renew his passport. This was refused because he still had tax debts. The taxpayer argued that he had never received the assessments.

Objection
The court did not agree. Because he had given his parents' address and had not changed it, the assessments had been announced correctly and in time.

The objection was therefore declared inadmissible and the assessments and fines had to be paid.

How to avoid this?
Make sure you give the correct postal address so that the tax authorities can reach you. Even after you have emigrated, assessments and letters may still follow. If you provide an address of friends or family, ask them to forward the mail to you by email as soon as they receive it.

Emigrating? Habermehl as your postal address!
For many clients we take care of forwarding the mail from the Tax Office. We act as a postal address for the Tax Office and ensure that all mail is scanned and forwarded by mail. This way no deadlines are missed and objections can be lodged on time.

But you don't know if there are any debts? Beware!
If so, accepting the benefit may be the best choice. But what is it and how do you do it?

Heritage
Receiving an inheritance? As an heir, there are three different ways to deal with an inheritance.

• Pure acceptance
• Reject
• Beneficial acceptance
• Which one should you choose?

Pure acceptance
When you accept the inheritance purely, you accept it completely and you inherit all possessions and debts together with the other heirs. You are then also liable for possible debts (together with the other heirs who have accepted purely).

You can accept an inheritance purely if you are sure that there are no debts or if you know that the assets are worth more than the debts.

Reject
If you reject an inheritance, you have no right to the assets. You get nothing from the estate, including personal property but you are also not liable for any debts.

You reject an inheritance if you do not wish to receive any of the property or if you do not wish to be liable for any debts.

Beneficial acceptance
If you accept an inheritance in a benevolent way then you are entitled to the possessions but you do not have to contribute to the debts. Only when the legacy has more possessions than debts, you have to accept this. If it turns out that there are more debts than possessions, then you still reject the inheritance.

You accept the benefit if you suspect or are not sure that the debts are higher than the assets.

How to accept for profit?
If you do want to accept the assets benevolently, you must inform the court of your choice. This has to be done in writing at the court of the area where the deceased lived.

Need any help?
Do you want help accepting an inheritance or do you want help with your inheritance tax return? Then please contact us.

Pay attention to the deadline or request a postponement

The annual accounts
The annual accounts of your BV must be drawn up and submitted to the shareholders within five months of the end of the financial year. According to the Dutch Civil Code, you are obliged to do this. Make sure you do this on time or request a postponement. After the annual accounts have been adopted, they must be filed with the Chamber of Commerce.

Who has to deposit?
The obligation to file applies to BVs, NVs, cooperatives and mutual societies. In addition, VOFs and CVs must also file if all managing partners are foreign capital partners, as well as associations and foundations with a company that achieves an annual turnover of at least € 6 million in two consecutive financial years.

When do you have to file?
A BV must prepare its annual accounts within 5 months after the end of the financial year. The latest date for this is 31 May 2019 for a calendar year. The board of directors then submits the annual accounts to the shareholders.

The shareholders may grant the management board an extension for the preparation of the annual accounts. This postponement may last up to 5 months. The annual accounts must then be drawn up by 31 October at the latest. We recommend that this granted postponement be recorded in writing.

The shareholders then have two months to adopt the annual accounts. At the latest on
The annual accounts must be filed with the Chamber of Commerce by 31 December.

Exception: DGA
Is the board also the sole shareholder? Or are all shareholders also directors or supervisory directors? In that case the two-month period for preparing the annual accounts expires. In that case, you must also file within 8 days of preparation. The deadline is then November 8.

What if you don't file in time?
Late or no filing is an economic offence. The tax authorities and the Public Prosecution Service may impose a fine on you as a result. You may also be summoned to appear in court.

As a director you can also be held personally liable for debts of the BV.

So make sure that you prepare and file your annual accounts on time.

Need any help?
We can take the preparation of the annual accounts, tax returns and administration off your hands. Interested? Then please contact us.

This way they are deductible 100%

Deductible expenses
Not all expenses are fully deductible. These are food, beverages and stimulants, representation costs such as receptions and entertainment. Also conferences, seminars and study trips are not 100% deductible.

These costs are considered to have a private element. Therefore, you can only deduct these costs for 80 % (sole trader, VOF) or deduct 73,5 % (BV). You can also opt for the threshold of € 4,600.

Designate limited deductible expenses in the WKR
If you have a BV, you can also designate these costs as final taxable income under the WKR. This means that these costs are deductible for 100%. This allows you to offer your employees a tax-free allowance of 1.2 % of the wage bill. This is called the free margin. A company outing that is normally only deductible for 80% can now be fully deductible. And it costs the employees nothing.

Any questions?
Do you have questions about the deductibility of expenses? We know how it works. Just get in touch with us.

If he receives monthly wages
It is common for a DMS to declare his salary to the tax authorities once a year. However, the tax authorities do not (or no longer) approve this.

Nihila declaration DGA
If the DMS is the only employee of a BV, in many cases a zero declaration will be filed 11 times and in the last declaration the wages are reported to the Tax Authorities and the income tax is paid on this. According to the Tax Authorities, these so-called zero declarations are only possible if you do not receive a monthly wage.

You can file a zero tax return 11 times if the DMS receives his/her total wage in December or if you receive a so-called fictive or customary wage. Do you not comply with these exceptions? In that case you simply need to file the normal wage tax return 12 times.

Payroll administration via Habermehl
Would you like Habermehl to take care of your payroll? That is possible! Please contact us.

After you have purchased it on the BV
Has your private limited company bought a car for you, but are you fed up with the additional tax liability after one or two years? Then it can be very lucrative to sell the car to yourself for far too low an amount and save a lot of VAT.

Sell the car for too low a price to yourself
If your private limited company has bought a car for you, this car will be worth a lot less after one or two years. This is also reflected in the residual BPM, which after one year is only 68% and after two years 53%. The transfer to private can be done at the actual value.

However, for VAT purposes, sales tax is calculated on the fee. If you buy the car from your private limited company for the residual BPM and a small mark-up of €3,000, you will only pay €520 in VAT. This is because the reimbursement is so low.

The actual value is higher and you then make a hidden profit distribution. However, a dividend tax return must be filed for this.

Calculation example
Book value car € 65,000 (excluding VAT)
Actual value/
purchase price car dealer € 60,400 (including vat)
Residual value BPM € 12.000
Actual value excl. VAT € 52,000
Sale to DGA for € 15,000 (including VAT)
VAT due
21%/121%x€ 3,000 = € 520

Instead of € 8.400. That makes a difference of € 7.880!

Do you want to save VAT?
Habermehl explains the best way to do this. Contact us by e-mail or call 035-6285753.

And avoid that not everything is deductible
Are you getting divorced? Is one of you going to keep living in your own home? Then it is customary that this one also pays all mortgage interest and repayments until the house is sold.

Divorce and the home
In the first two years after the divorce, this is not really a problem because, based on the divorce settlement, the interest is still deductible for the partner who no longer lives there. After this period, the interest is no longer deductible. There are solutions to prevent this, such as changing the occupancy of the property by the former partners.

For the partner who continues to live there, the interest he or she pays is deductible as alimony. Make sure that this is properly recorded and that there is no question, for example, of a user fee. Otherwise the tax authorities will not accept this as a deductible maintenance obligation. The correct formulation of the agreements is of great importance here.

Covenant tax check
In practice, we often find that the tax paragraph in the covenant receives too little attention. Prevent future discussions and let us carry out a tax check on the covenant.

Otherwise it will be more heavily taxed
Dividend payment is still possible this year and next year, so do you have profit reserves in your BV? Then distribute them as dividend before 2020.

Distribution of dividend
Paying out dividends may be advisable, because as of 2020, the tax for substantial interest shares will increase from 25% to 27.3% and as of 2021 even to 28.5%. This means that you will pay more tax on the same profit. Therefore, file your dividend tax return on time.

Can you make a provision for the costs now?
Do you have a business office building that you use or rent out yourself? Then as of 1 January 2013, you will have to have at least an energy label C if it is larger than 100 m². Do you not have energy label C on that date? Then it may no longer be used as an office building. Can you make a provision for the costs and already charge them to your profits?

Provision
You may make a provision in 2019 for the costs you will incur in 2023 as the expenses for this:

originate from circumstances that occurred before the balance sheet date;
can be attributed to this period;
with a reasonable degree of certainty will occur.
The purpose of the expenditure is to make the office space suitable for letting as office accommodation. But the costs are not attributable to the current rental income and therefore cannot be allocated to this period. So unfortunately you may not make a provision in 2019 for these costs that will be incurred in the future.

What can you do?
You can value the property at cost or lower value in use. Future capital expenditures may reduce the value in use. Commercial property is valued at the present value of future cash flows. You may therefore be able to deduct part of the future investment from your profits now.

Would you like more extensive advice?
Would you like more detailed advice about the provisions you can make? Then please contact us.

Are you and your partner(s) shareholder in a BV? Then you probably don't think about the mandatory employee insurance, do you? After all, you are not an employee!
If you are a shareholder of a BV with 1 or more partners, you often do this through a Personal Holding BV (PH). You are employed by your PH and you enter into a management agreement with the operating company (WM). The court recently ruled that the conditions in this management agreement were such that there was an employment contract. This meant that there was a relationship of authority and therefore an obligation to take out employee insurance.

DGA employee insurance mandatory
Every employee is insured under the employee insurance schemes, such as the Unemployment Insurance Act, the Disability Insurance Act, the WIA and the Sickness Benefits Act. In principle, this does not apply to a DMS.

The employment relationship of the director/major shareholder is not considered an employment relationship for the purposes of employee insurance. This is because there is no relationship of authority between the DMS and his employer. Who should be considered a DMS is determined in the Regulation Designation Director-Rajor Shareholder. This concerns:

1. the director who, whether or not together with his spouse, holds at least 50% of the votes in the general meeting of the company;

2. a director who, whether or not together with his spouse, holds such a number of shares that he can prevent dismissal;

3. the directors who can all cast an equal or almost equal number of votes in the general meeting of the company;

4. the director of a company of which at least two-thirds of the shares are held by his relatives by blood or marriage up to the third degree.

Conditions management agreement
The District Court of Gelderland recently ruled in ECLI:NL:RBGEL:2019:1115 that there was indeed an employer-employee relationship because the management agreement included the following conditions.

• A monthly payment has been agreed of € 11,666 exclusive of VAT, whereby it has been determined that this will be based on 40 hours of work per week.
• If the work cannot be performed due to illness, the fee shall continue to be paid for 12 months.
• The agreement will expire immediately once the PH is no longer a shareholder or upon the death of the DGA.
• There is a two-year non-competition clause for relations of the operating company.
• The WM takes out professional liability insurance.

Do you not want to be obliged to take out employee insurance?
Then pay close attention to the conditions you agree on together! In this case it went wrong for the shareholders. Do you want to be sure you are agreeing on the right conditions? Have your management agreement drawn up or reviewed by us. Please contact us and make an appointment.

Not even if this 100% is business!
Were you and your company at the Amsterdam Light Festival last winter? Do you sometimes hire a boat to go sailing with your clients in the summer? Then you probably think that you can deduct these costs, which are entirely business expenses, from your profits.

Representation expenses
Unfortunately, the legislator has put a stop to the deduction of entertainment expenses. All costs of vessels that are used for representative purposes are not tax deductible. This applies to the possession and rental costs of the boat. The individual costs of snacks and drinks are deductible, as well as any advertising.

This deduction limit is always more favourable than paying the relevant costs privately after dividend or salary. So do not pay it from your private account.

If you send invoices abroad
Do you have customers outside the Netherlands but within the EU? Then you probably send invoices whereby the VAT is reverse-charged to the foreign buyer. Check the VIES system when you send each invoice so that you are not liable for the VAT.

Check the VIES system
If you supply a service to a private individual in another EU country, you will send them an invoice with Dutch VAT because the place of supply is the Netherlands.

If you provide a service to an entrepreneur in another EU country, the VAT of the country of the customer applies. To make things easier for you as a Dutch entrepreneur, you do not have to pay this VAT yourself in the other EU country, but your customer does that for you. The VAT is then transferred to the customer.

You must state your customer's VAT number on your invoice. You must also check the validity of this number. You do this by means of the VIES system.

If you have checked this number, you will no longer be liable for any VAT which your customer fails to pay to the tax authorities. It is important that you can prove that you have checked the number. We therefore advise you to make a print screen of the outcome and to keep it with your invoice.

It is not enough to check this once and assume the number is still valid for the following invoices. You must check this again for each invoice. Otherwise you will still be liable.

Do you need help with your administration or a tax question?
Get in touch with us. Our staff will be happy to assist you.

Then ask to be heard so that you can inspect the tax authorities' file.

Submit an objection and request inspection
In this notice of objection, you can write why you do not agree with the tax assessment. It is important to ask to be heard in this objection procedure. In a hearing, you will be able to explain exactly why you believe the tax assessment is incorrect.

But perhaps even more important: you can ask to see all the documents relating to the case. The Tax Authorities have to show you all the documents in the file. You may even make copies of all documents.

Substantial fine by Habermehl annulled
For example, we once had a substantial fine of 50% annulled by inspecting the file. The fine file stated that there was no intent or gross negligence. In order for a fine of 50% to be imposed, there must have been intent or gross negligence, and if this is not the case, the fine cannot be upheld. The Tax Authorities themselves had indicated in an internal memo that no fine should have been imposed. But it was. By inspecting the file, this error was exposed and the fine was annulled.

So always ask to be heard during the objection phase, in order to gain access to the file.

Need help with an objection procedure?
Contact us if you wish to initiate an objection procedure. Our experts will take the worry out of your hands.

Please note that your advisor must report this to the tax authorities.

Duty to report tax evasion
On 13 March 2018, the so-called Mandatory Disclosure Directive was unanimously adopted. This directive means that tax advisors, notaries and lawyers must report to the Tax Authorities if they are or have been involved in cross-border tax structures where there is a possible risk of tax avoidance.

Tax intermediaries must report their involvement in a tax-aggressive structure to the Tax Authorities within 30 days. It is not important whether the tax advice is actually implemented or not. Nor is it important whether the advice is broadly within the legal framework or, on the contrary, is particularly aggressive in nature and pushes the limits of the law. National advice does not have to be reported. It is cross-border advice that counts, provided it meets certain characteristics.

The privilege for lawyers and advisers expressly does not apply. So are you asking your tax consultant for advice on a cross-border tax structure? If so, please bear in mind that the Tax Authorities may be notified of this.

Need tax advice?
Do you want to make the most of all tax laws and regulations? Whether you are a company or an individual? Our tax specialists know the rules through and through and will immerse themselves in your situation. That saves you time and gives you tax advantages. Now and in the future. Contact us and make an appointment.

And avoid a VAT fine
What many entrepreneurs do not know is that if you have performed a service or a delivery, you MUST send an invoice within two weeks after the end of the month. If you do not do this, the tax authorities can impose an additional assessment of sales tax with a penalty.

Avoid a VAT penalty
If you have a holding structure (a holding company and an operating company), you often send an invoice for your management fee from the holding company to the operating company. It can happen that the operating company is making a loss and that you therefore decide not to send an invoice for your services because you will not get paid anyway.

However, the Tax Authorities can impose an additional assessment pursuant to Article 34g of the Turnover Tax Act because you should have sent a VAT invoice within 15 days of the end of the month. Because you have not done this, you also get a VAT penalty.

Make sure that you send an invoice on time. In any case, within 15 days after the end of the month.

What do you do if the customer doesn't pay?
If the customer (in this case the operating company) does not pay the invoice, you can always reclaim this VAT on the basis of Article 29 of the Turnover Tax Act.

Need any help?
Do you need advice on the BV or receive penalties? or any other tax questions, please feel free to contact us.

Or the appeal is dismissed as inadmissible
Do you disagree with an assessment by the Tax Administration? If so, you can lodge an objection. In your notice of objection, you can explain to the Tax Administration why you disagree. Does the Tax Authorities stick to their position? If so, you can lodge an appeal with the court.

Court fee
In the notice of appeal you send to the court, you state the grounds for the decision you are appealing against and why. You will receive an invoice for the court fees immediately afterwards.

In this context, the term 'gatekeeping' is also used. In administrative law, which includes tax law, court fees have long been charged at the start of the procedure. In this way the collection risk of the government is limited.

How high are the court fees?
A natural person pays € 47 for court fees for all taxes except VAT, dividend tax and BPM.
A natural person pays € 174 for court fees for turnover tax, BPM and dividend tax.
A legal entity pays € 345 in court fees.

Pay on time
You have 4 weeks to pay the court fee. Article 12 of the Rules of Procedure for Administrative Law 2013 states that the court will first send an informal invitation by ordinary mail, setting a deadline of four weeks. If the amount is not paid within this period, a final demand for payment follows, pursuant to Article 8:41 of the Awb. You then have another four weeks to pay.

Do you not pay the court fee on time? Then the court can declare your appeal inadmissible. This means that they will not deal with the content of the appeal. So make sure you pay the court fees in time for an appeal to the tax court.

Need advice on an appeal procedure?
Then please contact us. We know the rules and are happy to assist you in the procedure.

Not only wage tax!
If you have a stamrecht BV, then in the past you have received a severance payment from your former employer. This payment was transferred to the BV in gross, i.e. without withholding of income tax.

Pay out annuity
If you are going to distribute this standing right, the distributions will be regarded as income and you will have to pay income tax on them. But there is another tax claim that you probably did not think of.

The periodic benefits paid to you by the Stamrecht BV must be actuarially calculated. This means that the BV must value the obligation on actuarial principles. Actuarial means that mortality rates will be taken into account. There is a chance that the person entitled to benefits dies during the period of the benefits. That in turn is a profit for the BV.

The BV must then calculate the value of the future benefits it pays to you. For tax purposes, a notional interest rate of 4% must be taken into account. This means that the BV is expected to make a return of 4%. In practice, this return is currently not being achieved. This means that the calculation must take into account a higher return than that actually achieved commercially. This means that the value of the obligation at the start of the payments is lower than before the payments started. This leads to a fiscal release and thus to a profit on which tax must be paid.

Invisible tax claim
So take this invisible tax claim into account. There are various ways in which you can limit the damage. You can opt to commute instead of paying out or you can shorten the duration of the payments. Would you like us to make the calculation or to advise you on this? Please contact us by telephone.

And avoid a fine
Do you find out that you have to pay an additional amount of VAT for 2018? Then file a supplementary VAT return quickly.

Quickly submit a supplementary VAT return
File the supplementary VAT return quickly, before filing your income tax or corporate tax return. This is because the Tax and Customs Administration uses your annual accounts or income tax or corporate tax return to check whether you still have a VAT liability on your balance sheet. This means they can find out for themselves whether you still have to pay an additional amount in VAT.

Fine
If the tax authorities find out about this without you having declared it yourself, you can be fined.

If the amount is higher than € 20,000.00, you will in any case receive a substantial fine. You should therefore ensure that you always check your VAT return carefully to ensure that the amount of additional VAT payable does not exceed € 20,000.00.

Outsource your financial administration?
Do you prefer to outsource your entire administration? Habermehl delivers tailor-made solutions. Contact us for more information and make use of our free transfer service.

In the case of an electric motor, the tax authorities will even help pay for it.
The motorcycle season is about to begin!

Motorcycle on the move
Are you an entrepreneur and are you considering putting a motorcycle on your business? All costs and VAT are deductible. You do not have an additional tax liability like with a car, but only a small correction for the kilometres driven for private purposes.

Electric motor on the go
Are you planning to buy a new motorcycle? Then consider an electric motor. With an electric motorcycle, you are entitled to the KIA and the MIA. These ensure that of the investment you make, the taxman will contribute approximately 80%.

Want to ride a motorcycle on the company?
Do you want to know how you can drive a motorcycle on the company budget? Then get in touch with us.

Such as travel and shipping costs that you pass on to your customer
One of the most common mistakes we encounter. You send your client an invoice for your supply or service. You calculate the applicable percentage, 21% or 9% or without VAT if it is an exempt service.

You also take into account travel expenses, for example, a train ticket or an airplane ticket. There is 9% VAT on train tickets and no VAT on airline tickets. What percentage do you charge your client for these costs?

Additional performance and main performance
The additional performance is incorporated in the main performance. This means that this additional service is subject to the VAT rate of the main service.

Examples
If you send a pallet of coffee to your client, then the low VAT rate of 9% also applies to the shipping costs. Because the 6% rate applies to coffee (the main service), this also applies to the shipping costs (additional service).

If you provide consultancy to your client on the other side of the country and take the train to do so, what costs do you pass on to your client? If so, the high VAT rate of 21% applies to the train costs (additional service) because the main service (consultancy) is also subject to 21% VAT.

Do you have a museum or nature park and do you also charge for parking? Then parking (normally high rate) also follows the low VAT rate of the museum admission.

Need any help?
Do you need help with your VAT return and your financial administration? Then get in touch with us. We are happy to help.

They are not completely anonymous and can therefore be traced by the tax authorities.
Do you have Bitcoin, Ripple, Ethereum or Litecoin? If so, you have to declare the value of these currencies in your Box 3 capital on 1 January. Many people think that these currencies are anonymous and therefore untraceable.

Crypto Currency
According to crypto-valuta.nl, a leading website on crypto-currencies, Bitcoins etc. are not completely anonymous at all. In addition, you should always declare all your receivables and cash and other assets in Box 3, even if they are not directly visible to others.

Do you have a wallet in which you have stored your crypto currency? If so, report the value as of January 1, 2018 in your 2018 income tax return.

However, due to the sometimes difficult marketability, you may be able to record a lower value than the price in effect on January 1, 2018.

Need help with your income tax return?
Please contact us. We will be happy to help you.

The knowledge, skill and expertise I can appreciate since 10 years and has literally paid off

Habermehl has been my tax consultant for 10 years. I value good service, fast response to questions or requests and that is great. Discussions are based on content and we always come to a conclusion.