BTW, the KOR and invoicing: the basics for expat beauty pros in the Netherlands

Dutch tax admin is the part of self-employment that scares most expat beauty professionals — mostly because the Belastingdienst website is Dutch-only and the rules read like they were written for accountants. The basics are actually manageable. This is an orientation, not tax advice: rules change and your situation may differ, so confirm the specifics with an accountant or the Belastingdienst before you file anything.

Two different taxes, don’t mix them up

Beginners often blur these together:

• BTW (VAT) — charged on what you sell, filed quarterly. Money you collect on behalf of the tax office; it was never yours.
• Inkomstenbelasting (income tax) — charged on your annual profit, filed once a year.

You can be exempt from the first and still owe the second. Registering with the KvK gets you into both systems automatically: the Belastingdienst issues your BTW-id after registration.

Which VAT rate applies to your treatments?

This is where beauty professionals get caught out, because the rate depends on what you do:

• Hairdressing services fall under the reduced 9% rate. Cutting, colouring, blow-drying.
• Most other beauty treatments are at the standard 21% rate. Nails, lashes, brows, facials, waxing, cosmetic pedicure.
• Some medical foot care can be VAT-exempt under the medical exemption, but only under specific conditions and qualifications.

If you offer a mix — say hair and nails — you may be applying two different rates on your invoices. That is normal, but it is exactly the kind of detail worth confirming with an accountant once, at the start, rather than correcting later.

The KOR: when charging no VAT makes sense

The kleineondernemersregeling (KOR, small business scheme) lets you skip VAT entirely if your annual turnover stays under €20,000. Under the KOR:

• You charge no VAT to clients.
• You file no VAT returns — a real time saving every quarter.
• You cannot reclaim VAT on your purchases (products, equipment, your car).

The catch most people miss: opting in commits you for three years. You cannot switch back next year because you bought an expensive piece of equipment and want the VAT back. And if your turnover crosses €20,000 mid-year, you must leave the scheme and start charging VAT immediately.

Is it worth it for you?

A rough rule:

• KOR usually wins if you are starting out, your turnover is comfortably under €20k, your clients are consumers (they cannot reclaim VAT anyway), and your purchases are modest. Your prices become effectively more competitive because there is no VAT on top.
• KOR usually loses if you are about to invest heavily (a treatment chair, laser equipment, a car), because that reclaimable VAT is real money — or if you expect to pass €20k soon and would rather not switch systems mid-flight.

For a starting mobile beauty pro serving private clients, the KOR is usually the simpler and cheaper choice. Apply via the Belastingdienst — ideally before your first invoice if you want it from day one.

What a compliant Dutch invoice must contain

Whether or not you are on the KOR, an invoice needs:

• Invoice date and a sequential invoice number (no gaps, no reused numbers)
• Your business name, address and KvK number
• Your BTW-id (if you charge VAT)
• The client’s name and address
• A description of the service and the date it was provided
• The amount excluding VAT, the VAT rate and amount, and the total

Under the KOR you charge no VAT, so instead of a VAT line your invoice should state that the small-business scheme applies — a line such as “Geen btw in rekening gebracht op grond van de kleineondernemersregeling” is the usual wording.

Keep your records for seven years — that is the standard Dutch retention period for business administration.

Practical habits that save you at year-end

• Separate your money. A dedicated business account makes the annual return dramatically simpler, even though an eenmanszaak does not legally require one.
• Log income as it happens, not in January. If your bookings run through one system, your revenue is already listed in one place instead of scattered across cash, Tikkie and bank transfers.
• Keep receipts for business purchases even under the KOR — they still reduce your taxable profit for income tax, even though you cannot reclaim the VAT.
• Consider an accountant who serves expats. For roughly €40–70/month they handle the Dutch-language side entirely. Most expat ZZP’ers who do this stop worrying about tax admin completely.

How this connects to how you take bookings

Two things make the paperwork easier without extra effort:

• Deposits and payments flowing through one system mean your turnover is recorded in one place, not reconstructed from chat apps at year-end. On pbw.life the deposit goes via iDEAL directly into your own Mollie account, so it lands in your business banking with a clear trail.
• Consistent pricing — knowing your rate structure per service (see our guide on taking bookings as an English-speaking pro) makes applying the right VAT rate per treatment straightforward.

New to all of this? Start with the expat guide to starting a mobile beauty business in the Netherlands, which covers KvK registration and insurance, or see what pbw.life does for expat pros.

This article is general orientation for self-employed beauty professionals in the Netherlands, not tax advice. Rates, thresholds and rules change. Confirm your own situation with a qualified accountant or the Belastingdienst.