You pay taxes on the profits your business generates. How it is regulated for your business depends in part on the legal form of your business.
Value-added tax (VAT)
The best-known tax, of course, is VAT. Another name for VAT is sales tax. As an individual/consumer, you face VAT at almost every checkout. As a business owner too, but as the recipient of it. But before you count yourself rich, you collect and then remit VAT on behalf of the Belastingdienst as well.
In your accounting, you see VAT in some places, and not in others. For example, there is no VAT at all on your results report, and only occasionally on your balance report. You see VAT mainly on invoices, and the VAT declaration for each period, of course.
But profit tax is not about sales tax (VAT) and there is no VAT involved.
Profit tax is another tax you pay on revenue. More precisely, only on profit. You usually pay this once a year. What profit tax looks like for you and your business depends on the legal form of your business.
For companies without legal personality, such as a sole proprietorship, the profit tax consists of income tax (inkomstenbelasting), often abbreviated to IB. For companies with a legal personality, such as a private limited company (BV), the profit tax consists of corporate income tax (vennootschapsbelasting). This is often abbreviated to VPB.
- Businesses without legal personality: you pay IB privately, your company also pays IB. It is combined.
- Businesses with legal personality: you pay IB privately, your company pays VPB. It is separate.
Income tax (IB)
When you file your private tax declaration, you also include your company's figures. That way, you pay income tax.
Corporate income tax (VPB)
When you file your private tax declaration, you report only the salary you took from your business. On your company's profits, your company pays income tax by filing a separate corporate income tax declaration.
Health Insurance Act (ZVW).
So regardless of the legal form of your company, you always pay IB in private. And that often goes hand in hand with ZVW. ZVW is an income-related contribution to the Health Insurance Act. Like IB, ZVW is something you pay privately. It is not relevant to your company's accounts.
How do I determine the figures?
In all cases, an annual statement helps determine which figures to report on your declaration. In addition to the figures from your company, you often need some private information when filing your income tax declaration, such as the balance of your bank accounts or information about your mortgage. Of course, you will never find these figures in the annual statement of your company, regardless of its legal form. You get them from your private administration.
How do I book the transactions?
You should only book VPB. IB and ZVW you pay from your private account. But you can possibly transfer it directly from your company if you want, you can read more about that here: