The following is a brief explanation of terms that are often used, particularly in the categories law and contracts and income and tax.
Advance tax payment
The Tax Office usually imposes an advance tax payment on freelances and self-employed entrepreneurs. This sum is calculated on the basis of your turnover or income from previous years. It is adjusted with the annual Income Tax Declaration. This prevents you from having to make a large payment in taxes in one go.
According to the Tax Office, an artist is someone who performs: someone who supplies an artistic performance that is intended to be seen and/or heard by the public, such as musicians, actors, cabaret artists, mime players, puppet players and singers.
The Artists Scheme is a tax system for artists who are treated as being employees employed for a wage and do not have a Declaration of Employment Relationship-Profit from Business Activities (VAR-WUO). The artist’s wage is arranged by the hiring party and paid to the artist.
An association is a form of enterprise that is a person at law. It is a form of cooperation between two or more persons (members) with a common purpose. See also form of enterprise.
Every client (organisation or person) who makes use of your services as a freelance/ZZP-er/self-employed entrepreneur is in principle a client, and thus not an employer.
Contract for an indeterminate period
A contract for an indeterminate period means among other things that your employer cannot just terminate the contract like that. If he does so and you do not protest, you cannot apply for unemployment benefit afterwards.
Someone who accepts an assignment and is not employed by a third party.
The creative industry is defined by the Ministry of Education, Culture and Science as a group of cultural and economic sectors in which creativity occupies pride of place: 1. arts (performing arts, visual arts, cultural heritage and cultural events, museums and monuments); 2. media and entertainment (film, TV, literature, journalism, publishing, new media and games; 3. creative business services (design, architecture, advertising, graphic sector, etc.).
Crowd funding, also known as micro-sponsoring, is when you directly (or indirectly through an intermediary) recruit sponsors who all contribute a small donation. The total of all their donations can be a considerable sum.
Dual partnership (VOF)
A dual partnership (VOF) is a form of enterprise that is not a person at law. It is a form of cooperation between two or more persons (partners) that is intended to engage in activity under a shared name. See also form of enterprise.
Short presentation (between 30 seconds and 2 minutes) in which you enthusiastically explain who you are and what you do. The elevator pitch starts by making a good entry to attract the attention of your conversation partner. You then explain who you are, what you stand for, and what you are good at. When you end with a request, you will make an impression on the interested party and you will be registered better in the mind of your conversation partner.
An employee is someone who is in the paid employment of an employer, and is thus not a contractor.
An employer is a business or organisation that has one or more employees in paid employment.
An entrepreneur is often seen as someone who undertakes a business or project with the aim of making a profit. An entrepreneur has vision, is independent, invests, and takes risks. On this site we use the term self-employed entrepreneur to indicate the status for tax purposes. In the eyes of the Tax Office there are two kinds of entrepreneurs:
1. organisation of labour and capital aimed at participation in economic activity in order to make a profit;
2. those who exercise a free profession such as freelances, ZZP-ers, and self-employed entrepreneurs. A different definition applies when it comes to VAT: for VAT purposes you are an entrepreneur if you engage in a business or profession on a self-employed basis. Even if you are not an entrepreneur for income tax purposes, you may be one for VAT purposes.
See freelance, self-employed entrepreneur, ZZP-er.
The entrepreneur’s deduction is a deduction from profit and consists of the following items: deduction for self-employed entrepreneurs, deduction for starters, deduction for starters in the event of incapacity for work, deduction for investigative and developmental work, deduction for participation, strike deduction. Because the profit is lower, you pay less tax. You are entitled to this if you spend at least 1225 hours a year on your enterprise.
The dictionary definition is ‘the undertaking of a business or project with the aim of making a profit’, but it can be interpreted more broadly. You do not need to be or to have a business in order to be an entrepreneur, and financial profit need not be the most important objective. Enterprise calls for vision, independence, investment and risk-taking.
Form at law
See also form of enterprise
Form of enterprise
A form of enterprise is the same as a form at law and refers to the juridical status of an enterprise. The are two kinds of forms of enterprise: with and without personality at law. If your enterprise is a person at law, creditors cannot claim your private possessions. If your enterprise is not a person at law, they can do so.
See also the page law and contracts / forms of enterprise
The foundation is a form of enterprise that is a person at law. The articles contain a purpose that may not be the payment of members of the board or founders without their doing something in return. See also form of enterprise.
The term freelance is used in everyday usage for a variety of situations. On this site we use it for people who accept assignments (entrepreneurs) who do not (yet) satisfy the criteria applied by the Tax Office for self-employed entrepreneurs. See also entrepreneur, self-employed entrepreneur and ZZP-
The tax that you pay on your expenses. You can deduct the VAT that you pay on your expenses from the VAT that you charge your customers. That is called deduction of input tax. See also VAT.
An organisation to represent the interests of the members of the association. This is often a professional group. Usually you have to be a member in order to be able to make use of the services of the interest group. An interest group offers a variety of services such as a network, courses and vacancies.
Marketing provides you with instruments to find a market for your work and to sell it there. A marketing plan includes definition of the target group, and how you intend to communicate with that target group, both online and offline.
A one-person business is a form of enterprise without being a person at law. It is the simplest form of enterprise. See also form of enterprise.
An option is a sort of reservation. If you take an option on goods or services, for a specified period you have the sole right to decide to purchase those goods or services. Examples are hiring items or taking options on venues for a performance. If a client has taken an option on your services, during the specified period you are not free to accept other work without consultation with the client.
If you do not have a Declaration of Employment Relationship-Profit from Business Activities (VAR-WUO), you can resort to a payroll service agency. As a freelance or self-employed person without personnel (ZZP), you conduct the negotiations regarding the commission and the fee with your client. The payroll agency takes over the administrative activities from the company to which the employee resorts and is the employer at law. Both a client, a self-employed person without personnel and a freelance can call in a payroll agency. The payroll agency receives a percentage of the salary.
The partnership is a form of enterprise. It is a form of cooperation involving two or more persons (partners) who exercise a profession under a shared name.
See also form of enterprise.
Pecha Kucha is a concept for giving short, powerful and creative presentations. The name derives from a Japanese word for ‘chit chat’. It consists of a presentation of 20 slides, on each of which the speaker comments for 20 seconds. Each slide is shown for exactly 20 seconds, resulting in a total presentation time of 6 minutes and 40 seconds.
Person at law
This is a juridical construction in which an abstract entity or organisation can act as a full and capable person at law with the same rights and obligations as a natural person. The foundation, the association and the private company are persons at law.
Public Relations (PR)
PR is the creation and maintenance of contacts that are important for your product or organisation.
A definition of ‘pitch’ is ‘sales presentation’. You sell yourself, your idea or your project to interested parties. The pitch is short, original and concise. Each organisation or platform where you can pitch determines the precise amount of time available for your pitch, but assume somewhere around 7 minutes. Each discipline has its own rules for pitching.
A PRIE (Production, Risk, Inventory and Evaluation) charts the risks during the build up, performance and disassembly of a production.
Private company (BV)
A private company is a form of enterprise that is a person at law. It is suitable for enterprises that make a large profit. See also form of enterprise.
See Interest group.
If you apply for Artist’s Income Support (WWIK), Cultuur-Ondernemen will investigate your professionalism. You must satisfy their criteria if you are to be eligible for the WWIK. See the WWIK list of terms.
Project management is the simultaneous management and supervision of all the processes that are required to achieve a satisfactory result.
If you have a profit motive, your aim is to make a profit: the turnover must exceed the expenses. In choosing a form of enterprise, it is important to know whether you intend to use that profit for private purposes as well, or whether you will plough all the profit back into the enterprise.
A sector institute is responsible for carrying out five tasks: national and international representation and promotion; education, information and reflection; inventory, evaluation and access for heritage: documentation and archiving; harmonisation and coordination. The tasks are intended to improve the functioning of the sector.
Sector institutes are subsidised by the Ministry of Education, Culture and Science. Examples: Netherlands Music Institute and Eye Film Institute.
On this site we use the term self-employed entrepreneur for a person who is recognised as a self-employed entrepreneur by the Tax Office. In order to be recognised as such, an entrepreneur must have at least three different clients a year and run the risk of being paid later or not at all. The Tax Office has further requirements, but a magistrate takes these two criteria first and foremost into consideration. To determine whether a self-employed entrepreneur is also entitled to the entrepreneur’s deduction, the Tax Office requires that the entrepreneur has spent at least 1225 hours a year on the enterprise, and that investments and a profit have been made. See also entrepreneur, freelance, ZZP-er
Small allowance scheme
You can receive a maximum of € 163 gross per performance via the small allowance scheme. In that case the client does not deduct and transfer income tax on that sum at that moment. You must declare this income on your annual Income Tax Declaration. If you have received more than your expenses, you pay tax over the difference.
Small entrepreneurs scheme
The Small Entrepreneurs Scheme is a scheme for self-employed entrepreneurs and freelances who pay little VAT. If you make use of it, you pay less VAT or even none at all.
Tax deduction is a Tax Office term. Everyone who pays taxes is eligible for tax deductions. There are various types of deduction (parental deduction, child deduction, general deduction) depending on your situation.
A tender is a formal offer of goods or services. Tenders are requested and issued in writing. A tender is drawn up at the request of a potential client/buyer. It may concern a service (including performance, production work, filming), an assignment (design, consultancy) or a product (including material, computer, insurance). A tender becomes an agreement if it is confirmed by both parties.
A trade union is traditionally an association of employees with a particular profession or within a branch of industry whose purpose is to represent the interests of the branch and to defend the social and economic interests of the members. Nowadays contractors (freelances or self-employed entrepreneurs) can also become members of a union.
Turnover is the total payment that you have received in a specific period for the goods or services that you have provided.
VAR stands for Declaration of Employment Relationship. Clients can request a declaration of this kind from contractors (ZZP-ers, freelances, self-employed entrepreneurs) to demonstrate their fiscal status. You apply to the Tax Office for a VAR. There are various kinds of VAR. The most important are:
- VAR-wuo (income is derived from enterprise). This guarantees that the client is not required to deduct and transfer tax on your earnings. You can apply for this if you meet many of the criteria for a self-employed entrepreneur.
- VAR-row (income is the result of other activates). This does not give your clients a guarantee that they do not need to deduct and transfer tax on your earnings. The client must decide for himself whether a (fictive) relation of employment is involved. This is thus not an ideal situation.
Value added tax is added to the invoice for your service, product or performance. There are different VAT rates. See also enterprise, input tax.
The Law on Work and Income of Artists is a financial scheme for professional artists that has been abolished the 1st January 2012. The transition arrangements (until July 1st 2012) will apply only to those who already had the right to receive WWIK on December 31 2011. See also the page income and tax / social security / WWIK.
ZZP stands for self-employed without personnel. Like the term freelance, the term ZZP-er is used in a variety of ways. The term says nothing about fiscal status. A ZZP-er is not recognised as a self-employed entrepreneur unless he satisfies the Tax Office criteria. See also freelance, entrepreneur, self-employed entrepreneur.