Turnover tax is more commonly known as VAT or Value Added Tax. In principle you are liable for VAT on your total turnover unless you are exempted. You can deduct VAT you have paid from the amount of VAT you owe. So in fact you pay tax on the value you add: the difference between your cost price and your selling price.
Turnover tax returns have to be filed electronically every month, quarter or year, depending on, for example, the size of your business. &VanderKloet can help you in this respect and make sure that you file your returns in time and correctly.
If you do business outside the Netherlands, you will have to comply with some extra administrative requirements. The VAT regulations that will apply will depend on the country with which you are doing business. The rules applying in respect of EU countries differ from those applying in respect of non-EU countries. Since 2005, returns have to be filed electronically.&VanderKloet’s know-how and experience in this field will help you to organise your administration correctly and avoid mistakes in your VAT returns.
Entrepeneurs who do business abroad or at the border are often obligated tot do a so called ‘Intra Communautaire Prestatie’ (ICP) VAT-return. With this tax return, the seller is ‘linked’ to the buyer within the European Union. If either the seller or the buyer neglects to file this return, the Tax Department can start an investigation.