Do you work independently as an artist? Then in a number of cases you can choose not to charge VAT on your income. This is the artist scheme. You may therefore not deduct the VAT on your expenses.
How does the artist scheme work?
As an artist, you can choose to have your client pay payroll taxes and premiums on your income. You are then, as it were, employed by the client for a short period of time. This can also have consequences for VAT. 2 situations are possible:
- You use the artist scheme and do not charge VAT.
If you choose not to charge VAT, you are also not allowed to deduct VAT as input tax on expenses. - You charge VAT and therefore do not use the artist scheme.
If you choose to charge VAT, you will charge VAT on the total of your fee. In addition to your salary and expenses, this also consists of the payroll taxes and premiums that your client pays for you. You may deduct VAT that you have paid on business expenses as input tax .
Conditions for the artist scheme
You can only opt for the artist scheme if you meet the following 3 conditions:
- You never charge VAT.
- You do not use a Statement of Employment Relationship Profit from Business (VAR-wuo) or a Statement of Employment Relationship Director-Major Shareholder (VAR-dga).
- Your performances take place in the Netherlands.
Orchestras and pop groups
Regularly performing orchestras and pop groups are VAT entrepreneurs. They can also choose not to be an entrepreneur for VAT purposes. The condition here is that no member of the orchestra or pop group is regarded as an entrepreneur for VAT purposes.
Pay attention!
Are you a musician and an entrepreneur for VAT? And do you fill in temporarily, for example in an orchestra? Then you do not have to charge VAT on this income. The condition here is that your position in the orchestra is equal to that of the permanent members.
Source: belastingdienst.nl
