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VAR verklaring / statement

In the event you have your own company or you work freelance you can be asked to provide a so called VAR verklaring. Why is this being asked and what does this contain?

If you hire a independent contractor/company to assist you in your company, you basically tell this person what needs to be done and how it needs to be done. For that service you pay a fee. When you look from the perspective of the tax office, this is regarded an employment for which wage tax and social premiums are due. During an audit the tax office can take the standpoint that the invoice amount paid is the net salary, that needs to be grossed up added with a penalty. A substantial liability. Even worse, if the contractor/company has only you as a client, the tax office is completely right to act like this.

To prevent the situation that the tax office takes this standpoint, you ask the contractor/ company working for you to provide a VAR statement. With the correctly issued VAR statement the tax office will not look at the working relation as being an employment.

The contractor/company needs to apply for the VAR statement with the tax office. A list of questions needs to be answered. Based on the answers the tax office can determine if you are a genuine entrepreneur, or actually an employee or a managing director shareholder of your company.

The outcome can be a VAR WUO which implies you are a genuine company, VAR loon which implies you are not a company but an employee and there is the VAR dga but that only applies to BV company situations.

We suggest companies to request for this statement if a person working for you claims to be an entrepreneur.

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