Two thirds of freelancers in the Netherlands have no idea what the end of the VAR certification system will mean for them, according to research carried out for BNR Radio.

On May 1, tax office-issued VAR certificates will no longer be considered proof that someone is self employed. Instead they are being replaced by individual contracts between freelancer and client.

Of the 200 freelancers questioned by BNR, 48% knew something was changing in their status but not exactly what and 19% had no idea any changes were coming into effect. And almost 25% of those polled said information about what the changes mean is hard to find or impossible to understand.

In effect, freelancers will have to sign a contract with all their clients which shows they are self employed. This means they must use their own tools, must be free to carry out the work as they thing fit and must be replaceable – ie not a key member of a team.

Liability

Contracts are not compulsory but if the tax office decides that a freelancer is effectively an employee, the employer will be liable for social insurance premiums and other payments. In the current set-up, premiums are the responsibility of the freelancer.

The government has brought in a change-over period of one year to try and says tax officials will take a lenient approach until 2017.

The government says the aim of the changes is to prevent companies treating freelancers as ordinary members of staff without picking up the tab for sick pay, holiday pay and social insurance.

More information
Tax office (Dutch only)
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