entrepreneur and the income tax?

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Updated 9 years ago

Did you ever noticed? Maybe you've never thought about?

Not any website where sales activities are offered, talks about the possible tax consequences of these activities.
I have in the course of the time already seen some websites but this aspect is skipped.
Beautiful cries like "earn tons of money" and "in no time your boss on the side" may have far-reaching consequences but not always, of course.
It can, however, put a damper on the party spirit as the merits are going to get.a "nice" size
A nice goal to sign up 50 or 100 new members and receive a nice Commission.

or earn 500 or more per day.
But are these all merits? The famous bonus where you can do nice things about?
You are solely responsible for the consequences of your act.

Of course, each country has its own rules and laws.
Similarly tax rules and laws.
I do understand websites where activities are offered, cannot point on all the rules and laws because these websites go on a global level.
This would be too complicated and not more attractive!

However, I should like to indicate possible financial consequences that you always post only come into view. And that, of course, is too late and then "are Mayhem!"

Below I have highlighted a few aspects where some attention might be in place.
This only concerns the Dutch situation but will no doubt for other countries also apply taking into account particular national rules and laws.

The Dutch tax service is, in advance, not always clear.
The Dutch tax authority usually denotes only afterwards to what you should do in a given situation.
Hindsight is easy to judge but you must consider what is the right way.

Hobby or business?

Do you have a website you regularly advertises on internet?
For example, on market place or Facebook?
Or you earn money with your internet site, as with the online selling goods or services, or with activities such as affiliate?

If the answer to these questions is Yes, you are probably an entrepreneur.

But whether that really is the case, depends on several factors.
So there are differences between

A) entrepreneur for the NL-income tax

B) entrepreneur for the NL-BTW.

Here's what the different types of entrepreneurship for the NL-tax authorities.

When are you not a entrepreneur?

offers goods or services free of charge?
or just in the hobby or family atmosphere?

Then you are for the NL-tax service not an entrepreneur. so you don't have to pay sales tax and you do nothing to mention in your declaration income tax.

Entrepreneur for the NL-income tax

do you sell goods or services online?

And you can expect profit from this?
Then there is income and you are potentially entrepreneur for the NL-income tax.
â€¢ For the NL-income tax, there are 3 types of income:

profits from Enterprise wages

from employment relationship

result from other work

Under what source your earnings fall, depends on a number of factors.
The NL-law and case-law in certain requirements that the NL owners should meet.

Do you make profit? If so, how much?
If you only have a very small profit or

structural losses, it is unlikely that you are going to make a profit. There is no question of an enterprise.
How independent is your company?
If others decide how your company should set up and how you perform your work, lacks the independence. Then there is usually no mention of a company.
You have capital (in the form of money)?
Capital is necessary for many companies. For example, you should invest in advertising, hiring people and insurance. Enough capital to an enterprise to start and run some time, points out that you have a company as possible.
How much time you cross in your work?
If you spend a lot of time to an activity without that value for money, there is usually no mention of a company.
You, however, must spend enough time to your work to make this profitable.
Who are your clients? You strives to have multiple clients, among other things, payment and continuity to reduce risks. When you have multiple clients, place your dependence on one or a few clients and takes your independence.
How do you make your company known to outside?
You are for your existence depending on clients. Entrepreneurship, you must express itself sufficiently, for example by advertising, a website, a shield or private stationery.
You run "business risk"?
There is a chance that your clients don't pay? Are you using your good name for the exercise of your work? You are dependent on the supply of and demand for your products and services? You run ' business risk ', then you probably have a company.
You are liable for the debts of your business?
If you are liable for the debts of your business, then you are possible entrepreneur.

all this can be found on the site of the tax authorities.

Please note!

The only thing I want to achieve with this blog is focus on this aspect.
This is an advice to survey and also an attention grabber.
It would be very disappointing if later appears that you also have to pay income tax of your hard-earned cash, right?