The Migrantic partners write a weekly tax and/or immigration law column in a local newspaper. These columns are also featured below.

Slow death of the VAR (continued): the Model Agreements for independent contractors: do not use them (yet), but use our free offer!

The Declaration of Independent Contractor Status (Verklaring Arbeidsrelatie, VAR) was proof for principals of self-employed professionals (zzp’ers) or freelancers that they would not be held responsible for any payroll taxes with regard to these professionals working for them. With this VAR-declaration the Dutch Tax Administration states that they consider you an independent entrepreneur or a payroll employee.

As of 1 May 2016, the VAR will cease to exist and can be replaced by using Model Agreements that are published on the Dutch tax revenue (belastingdienst) website. There will be general and individual model agreements, as well as model agreements per sector and profession. There is a transition period up to 1 May 2017. During this period the belastingdienst will only issue warnings (disregarding cases of tax fraud) and a special advice committee will review the current Model Agreements as these agreements contain flaws and are subject to amendment resulting from the upcoming Committee report.

Our advice is NOT to use the Model Agreements at this time but to have the principal/commissioning party send a letter/e-mail to the current VAR holder (or new contractor) wherein it is stated that the transition period will be used to evaluate the work relation.

If you send us an e-mail and if you recommend out firm where you can, we will provide you with our wording for such a letter in English free of charge!

Tax specialist

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