New Law Clarification Assessment Employment Relations (Vbar)

A lot has changed in the past few months in the area of ​​ZZP legislation (legislation to qualify the working relation of self-employed individuals also known as ‘ZZP’). The new law, which has recently been submitted for assessment to the Dutch State Council, provides more clarity on the criteria for entrepreneurship. Minister Eddy van Hijum of Social Affairs has emphasized that this law is intended to remove the uncertainty surrounding bogus self-employment.

The most important (and cumulative) points are:

• VAT: ZZP'ers who pay VAT are considered self-employed.
• Investments: Self-employed people who invest time and money in their company are recognized as entrepreneurs.
• Customer acquisition: Actively acquiring customers is seen an major criterion for self-employment.
• Legal presumption of employment: Another important aspect of the new law is the legal presumption of employment. If a ZZP'er earns less than a certain hourly rate, he or she can claim the rights of an employee. It is then up to the client to prove that there is no employment contract

Enforcement and positive effects
Since the introduction of the Deregulation Assessment of Employment Relationship Act (DBA) in 2016, the Tax Authorities have been enforcing bogus self-employment more strictly. This has led to positive changes, such as employers adapting their working methods to better deploy self-employed workers

What does this mean for you?
As a self-employed person, it is important to stay informed of these changes. Make sure that you meet these cumulative new criteria to be recognized as a self-employed person and avoid problems with the Tax Authorities. Invest in your company, pay VAT and remain active in recruiting customers. As a client, it is important to continue to actively monitor these criteria and, in case of doubt, act immediately to prevent worse.

Do you have any questions about this upcoming new legislation as a self-employed person or as a client, or do you want to know how it affects your situation? Then contact one of our experts at Human Capital Taxperience. We are ready to help you!