As an employer, do you make payments to workers or service providers who are not employed by you? If so, you have a reporting obligation. By January 31, 2025, you must notify the Tax Office of payments made in 2024.
An employer is obliged to provide information to the Tax Authorities about payments made to individuals who are not employed by the employer. This obligation, also known as the information reporting obligation, applies to all organizations that are liable to withhold taxes. There is no reporting obligation for some payments. Excluded from the information reporting obligation are:
- Payments for work performed by one's own employee (including the commissioner/supervisor who is a volunteer under the payroll tax regime (opting-in),
- Payments to artists, professional athletes or members of a foreign company;
- Payments for work as a volunteer under the volunteer payroll tax scheme;
- Payments for which an invoice with sales tax has been issued and on which the sales tax is stated, including payments to a self-employed person who issues an invoice with 0% VAT and a VAT number on the invoice as well as invoices where the VAT reverse charge mechanism has been applied. Please note: If the person in question falls under the small business scheme or there are purely VAT-exempt services (for example, in the healthcare or cultural sector or in education), then the information obligation does apply!
The reports must be submitted via the 'Data portal for amounts paid to third parties', which can be found on the Tax and Customs Administration's website (also called opgaaf UBD). In addition to an overview of the amounts paid in the calendar year, the name, address, BSN and date of birth of the recipient must also be provided.
What steps should you take?
Map out which payments you make to third parties, such as freelancers, authors or speakers, in 2024. If so, you will need to report the relevant payments through the above portal by Jan. 31, 2025. If you need assistance in carrying out the reporting or are unsure whether the reporting obligation also applies to you, please feel free to contact us through the payroll tax focus group or through your relationship manager, by email, or by phone at 040 - 2 504 504.