ZZP’ers (zelfstandige zonder personeel) are afforded incredible flexibility and independence when working in the Netherlands.
But this freedom comes with some unavoidable responsibilities. From taxes and invoicing, to compliance and financial planning, there are many areas where new and experienced freelancers can slip up.
Xolo is here to help you avoid these costly mistakes. We’ve compiled a list of the 8 most common mistakes ZZP’ers make in the Netherlands, and how to avoid them.
What are the 8 most common ZZP’er mistakes?
From incorrect registrations with tax authorities, to over-estimating the bond with a single client, being a freelancer in the Netherlands may feel a bit precarious. With a cool head, and the right focus, you can avoid these common, costly mistakes and discover everything that makes the Dutch ZZP way of life one of the best in the world.
1. Failing to register correctly with the KVK and tax authorities
Some freelancers jump into work without properly registering their business with the Chamber of Commerce (KVK) or forget to sign up for VAT (BTW) with the Belastingdienst. This can lead to compliance issues, missed tax benefits, and even fines.
How to avoid this mistake
- Register your business as a sole proprietorship (eenmanszaak) with the KVK before you start working.
- Get your KVK and VAT (BTW) numbers—these are essential for invoicing clients and staying tax-compliant.
- Earning under €20,000 per year? If your business serves local B2B or B2C clients, consider applying for the Small Business Scheme (KOR) to simplify VAT reporting. Read more about the KOR scheme here.
2. Not setting aside money for taxes and VAT payments
It’s easy to underestimate your tax liability, and oftentimes fail to set aside enough money for quarterly VAT (BTW) payments and annual income tax returns. When tax deadlines arrive, it’s already too late to avoid the added additional stress. Thankfully, like most common mistakes, this one can be avoided.
How to avoid this mistake
- VAT payments: Since VAT is collected from your clients, set aside the 21% (or 9% for some services) immediately after invoicing.
- Income tax: A good rule of thumb is to save 30-50% of your earnings, depending on your tax bracket.
- Use a separate savings account to store tax funds so you’re prepared for quarterly VAT and annual income tax payments.
3. Incorrect or incomplete invoicing
Invoices must follow strict Dutch regulations, yet many freelancers fail to include some of the required details. Avoiding this mistake can prevent annoying payment delays and complex tax compliance issues.
How to avoid this mistake
Ensure every invoice contains the following:
✔ Your full name and business details (including KVK number).
✔ Your VAT (BTW) number if applicable.
✔ A unique invoice number (sequential).
✔ The date of issue.
✔ A clear description of services rendered.
✔ The total amount and applicable VAT rate (21%, 9%, or exempt).
✔ Your client’s details, including their VAT number if applicable.
💡 Tip: We recommend using an invoicing tool like Xolo to automate and streamline your invoicing, ensuring your compliance with Dutch tax regulations.
4. Over-reliance on a single client (false self-employment risks)
Some ZZP’ers work for a single long-term client, making them vulnerable to false self-employment (schijnzelfstandigheid) rules. The Dutch Tax Authority may classify such freelancers as employees, resulting in penalties and additional expenses.
How to avoid this mistake
- Work with multiple clients to demonstrate independence.
- Ensure you have control over how, where and when you work.
- Draft clear contracts with clients specifying your independent status.
- Have a website
- Make sure you decide your own rate
- If a single client makes up more than 70% of your income, start looking for additional clients to diversify your workload.
Read more about the risk of false self-employment.
5. Missing out on tax deductions and self-employment benefits
Tax deductions can be the difference between a stressful tax season, and a delightful one. When you qualify for a deduction, there is likely no reason why you shouldn’t apply for it. Many freelancers fail to find all that they’re entitled to, and miss out on valuable savings year-after-year.
How to avoid this mistake
- Claim self-employment deductions (zelfstandigenaftrek) if you work at least 1,225 hours per year as a ZZP’er.
- Claim startersaftrek (starter's deduction) if you’re a new freelancer for extra tax relief.
- Use the Small-Scale Investment Deduction (KIA) for business-related purchases like laptops, office furniture, or equipment. Read more about KIA here.
- Keep track of business expenses such as office rent, internet, phone bills, transportation and professional development, as these may be deductible.
- Maintain a kilometre-log for business trips when using a private vehicle.
- Maintain a kilometre-log for private trips when using a business vehicle (business asset).
Read more about tax deductions as a ZZPer here.
6. Poor financial management and lack of pension planning
Many freelancers don’t plan for retirement or lack financial security in the case of sickness or unexpected income loss. Unlike salaried employees, ZZP’ers must arrange their own pension and insurance.
How to avoid this mistake
- Consider setting up a private pension plan or investing in long-term savings.
- Take out disability insurance (arbeidsongeschiktheidsverzekering, AOV) to cover lost income if you become ill or injured.
- Create an emergency fund with at least 3-6 months of living expenses to cover unexpected downturns.
7. Not submitting VAT and tax declarations on time
Late tax submissions can result in hefty fines from the Belastingdienst. Many freelancers miss deadlines due to disorganization or a lack of knowledge about required filings.
How to avoid this mistake
- VAT declarations must be submitted quarterly—set calendar reminders for the deadlines:
- Q1: April 30
- Q2: July 31
- Q3: October 31
- Q4: January 31
- Annual income tax returns are due by May 1 each year.
- Use an accounting tool or hire a tax professional to help you stay on track.
💡 Tip: Xolo’s automated system helps track your income, VAT, and taxes, ensuring you never miss a deadline.
8. Not having contracts in place
Verbal agreements might seem convenient, but they offer no legal protection if a client refuses to pay or if disputes arise.
How to avoid this mistake
- Always sign a clear contract before starting any work or new client relationship.
- Include details on scope, deadlines, payment terms and cancellation policies.
- Use contract templates or hire a legal expert to draft professional agreements.
- File your general terms and conditions with the Chamber of Commerce.
🇳🇱 Avoid these mistakes every year–with Xolo Netherlands!
At Xolo, we make freelancing easier, more efficient, and fully compliant with Dutch regulations. Here’s how we help:
✔️ Guidance through KVK and tax registration.
✔️ Legally compliant invoice creation tool.
✔️ Complete tax and VAT compliance.
✔️ Expense tracking and deduction management.
✔️ The #1 freelancer community in Europe.
Freelancing in the Netherlands comes with many advantages, but avoiding common mistakes is crucial for long-term success. Whether it’s staying on top of taxes, managing invoices correctly, or securing multiple clients, being proactive can save you money, time, and stress.
Avoid the stress that comes with taxes. Focus on growing your business instead.
🚀 Start your ZZP journey the right way, with Xolo––sign up today!