March 27, 2019

Dog tax: free to over a hundred euros in some places

Filed under: Animals,Comics by Orangemaster @ 2:42 pm

I first heard about a dog tax in a French comic book as a child. A family was playing a record on a turntable of the Skater’s Waltz by Frenchman Émile Waldteufel, sung by dogs, according to the drawings, of course. The family had earlier claimed they did not have a dog and at some point, the dog tax collector came back and gave them a fine for having a lot of dogs after hearing the record through the front door.

Like many things in the Netherlands that make little sense, municipalities often charge very different fees for things that shouldn’t be that different from one place to the next. A quick look at Noord-Brabant has Tilburg (107,86 euro) and Breda (104,55 euro) as the most expensive, followed by Veldhoven (84,18 euro), Den Bosch (83,64 euro) and Eindhoven (77,00 euro).

Municipalities that charge over 100 euro include The Hague and a few other places close to it that border the coast, Groningen way up north, Nijmegen next to Germany. Dog owners in 57 per cent of all municipalities still pay dog tax. One reason for a large amount of municipalities not to charge dog tax is that they need to have collectors and that’s expensive and not always very efficient.

Not only is dog tax apparently the oldest type of tax in the Netherlands, it’s also rarely used for cleaning up dog poop.

For anybody who cares about the situation in Noord-Brabant, feel free to sign a petition in order to get rid of dog tax.

Link: omroepbrabant.nl)

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January 29, 2016

Flying Spaghetti Monster recognised by Dutch Chamber of Commerce

Filed under: Religion by Branko Collin @ 8:51 am

fsm-dennis-van-zuijlekomThe Dutch branch of the Church of the Flying Spaghetti Monster has scored a small victory. On Tuesday the Utrecht Chamber of Commerce has allowed the church to be entered in the company register, NOS op 3 writes.

The Chamber of Commerce had initially refused to register the church, but replied after an appeal that “there is not a sufficiently solid (legal) basis for a continuation of [our] refusal.”

Legal recognition of a church can lead to many tax breaks, according to an article in Trouw in 2004. Another battle, the right for pastafarians to wear their religious hat (a colander) in passport photos, has yet to be won.

The Church of the Flying Spaghetti Monster was founded in 2005 by American Bobby Henderson after the state of Kansas had decided that the Christian dogma of creationism should be given equal weight in the classroom to the scientific theory of evolution. Henderson felt it was important that the children of Kansas should be taught the real origins of life: “I and many others around the world are of the strong belief that the universe was created by a Flying Spaghetti Monster. It was He who created all that we see and all that we feel.”

In 1998 about 32% of the Dutch identified as Catholic, with Ietsism coming in as the second biggest religion at 18%. I estimate the percentage of self-identified Pastafarians to be less than a tenth of a percent.

(Photo of a Pastafarian worshipper in full regalia by Dennis van Zuijlekom, some rights reserved)

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October 31, 2015

Bitcoin is VAT free in Europe, top court confirms

Filed under: General by Branko Collin @ 10:20 pm

bitcoin-key-fob-btc_keychainThe Court of Justice of the European Union has ruled that Bitcoin is a currency and that trading in it is exempt of VAT.

Dutch Bitcoin exchange Litebit.eu had to pay 21% VAT over their margins, but can now ask for a tax refund, according to CEO Rogier Fischer in Business Insider UK.

The ruling (PDF to press release) follows a year in which banks worldwide have been contemplating the use of blockchain, the electronic public ledger used for all Bitcoin transactions.

In 2013 Dutch Finance Minister Jeroen Dijsselbloem ruled that Bitcoin was not electronic money. Arnoud Engelfriet wrote last week that the European ruling brings Bitcoin “a step closer to being money”.

Dutch people still need to pay capital tax over the Bitcoin they own, because capital tax is calculated over the value of all possessions, not just over that of money.

(Photo by BTC Keychain, some rights reserved)

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October 25, 2014

Dutch have best VAT discipline, together with Fins

Filed under: General by Branko Collin @ 11:55 pm

Are the Dutch goody two-shoes or do they merely possess a strong sense of civic duty? I’ll leave that for our readers to decide.

According to Z24 last Thursday the Dutch and the Fins are the best at paying their value added tax (VAT).

The European Commission compared the expected VAT with the VAT that was actually collected in 26 Member States in 2012. Finland and the Netherlands had a VAT gap of 5%, closely followed by Luxembourg at 6%. Romania had the largest gap at 44%. The average VAT gap for the European Union was 16% which translates to an estimated 177 billion euro in lost tax revenue. This lost revenue is borne by the governments and by the entrepreneurs who actually do pay VAT.

The way VAT works is that it is collected for the government by the businesses at the point of sale. It is a consumer tax, so businesses get to deduct the VAT they themselves paid from the money they send to the government.

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March 31, 2014

Bitcoin on the Dutch income tax form

Filed under: General by Branko Collin @ 1:49 pm

bd-bitcoin

It was only last year that finance minister Dijsselbloem told Dutch parliament how he was going to treat Bitcoin and already the virtual currency has found its way into the income tax forms.

What you see here is a screenshot of the form I used last weekend to report my income. There is a box for “other possessions” which includes goods, trust funds, inheritances that have yet to be divided and so on. The last line of the yellow explanatory box (enlarged in the illustration) says “virtual mediums of payment (for instance bitcoins)”. Unfortunately the “more information” link doesn’t help you find out how to value your Bitcoins. I am sure that is something left for the likes of Kluwer and Elsevier with their tax guides and tax almanacs.

Since the income tax law of 2001, Dutch income tax is calculated over the money you make from work (box 1), from investments (box 2) and from property minus debt (box 3).

(Thanks to commenter Corné at Iusmentis for pointing this out)

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September 30, 2013

Dutch law turns solar panel owners into entrepreneurs

Filed under: Sustainability by Branko Collin @ 8:08 pm

It sounds like a win-win plan for everybody: the government subsidizes the purchase of solar panels for private families who use the panels to generate clean energy and sell any left over electricity to the public utilities.

Strictly speaking, selling electricity is a commercial transaction over which value added tax must be paid. The Court of Justice of the European Union confirmed this in a ruling in an Austrian case earlier this year. Dutch junior minister Frans Weekers confirmed last week that the ruling also applies to the Netherlands, Z24 reports. Owning a solar panel and selling electricity to the public utilities automatically makes it impossible, the minister told parliament, “to deny one’s status as an entrepreneur” where value added tax is concerned.

This is problematic for a couple of reasons. Solar panel owners rarely get to see how much they have sold back; the utilities just charge them for the balance. Paying VAT also means you have to start bookkeeping. You can ask for an exemption if you expect to pay less than 1,345 euro a year which also releases you from the obligation of bookkeeping.
According to Vereniging Eigen Huis, minister Weekers considers the judgement undesirable and will ask the European Union for a change in the regulations. In the meantime he will initiate talks with the utilities.

I remember when I started freelancing. I made so little money that the people from the tax office laughed at me when I told them I wanted to register for paying added value tax. The difference between me and solar panel owners was of course that I wanted to be an entrepreneur and saw keeping accounts as part of the cost of entry.

According to Dutchnews earlier this year, “solar panels in the Netherlands produce some 100 million kilowatt hours of power” whereas “Dutch solar panel makers had a turnover of over € 490m in 2010”. A quick calculation using the rates of a local supplier shows that solar panel using home owners lowered their electricity bills by 6.5 million euro in 2012, making the solar panel manufacturers the big winners.

(Photo by Mhassan Abdollahi, some rights reserved)

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July 16, 2013

Dutch tourist tax is the top moneymaker for municipalities

Filed under: General by Orangemaster @ 12:00 pm

This year Dutch municipalities expect to rake in 162 million euro in tourist tax, 62 million more than in 2010. In 2011, 174 of the 418 municipalities hiked up its tax and in some places, the tax at hotels simply doubled.

Of all the municipal taxes, it is the tourist tax that goes up the most each year. And this year 76 percent of municipalities are collecting this cash cow of a tax, as compared to 72 percent last year. Tourist tax on the Wadden Sea islands is quite high with Texel at 26 percent and Vlieland at 42 percent.

The winner is Amsterdam, cashing in on 37 million euro in 2013, and the year isn’t over. A dubious honourable mention goes out to Rotterdam, which got rid of the tourist tax in 2005, but brought it back in 2010.

Paying tourist tax in your own country as a Dutch person does not seem to make much sense, but you could easily argue it. However, it is unclear when and where you pay tourist tax, as every municipality has either a fixed rate or a percentage, looking like a typical Dutch bureaucratic free-for-all that nobody can keep straight.

(Link: www.nieuws.nl, www.etoa.org)

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June 17, 2013

Bitcoin income shall be taxed, Dijsselbloem says

Filed under: Dutch first,Technology by Branko Collin @ 12:19 pm

Dutch people who accept payments in the new Internet currency Bitcoin will have to pay income tax on the funds they receive. Finance Minister Jeroen Dijsselbloem confirmed this two weeks ago after parliament had asked questions about Bitcoin, Nu.nl reports.

According to the minister, the “alternative virtual currency” cannot be seen as “electronic money” because it fails the definition set by the Dutch law. Dijsselbloem also reported that approximately 2% of all Bitcoin users in the world are Dutch, and that these Dutch owners possess about 20 million euro worth of Bitcoin. At the time of writing 1 Bitcoin represents about 75 euro.

Internet lawyer Arnoud Engelfriet helpfully explains that the Wet financieel toezicht (the law on financial control) defines electronic money as a monetary value that

  • Is stored electronically.
  • Represents a claim on the person or organisation who issues it.
  • Is issued in exchange for money to make payments with.
  • Can be used to pay both the issuer and others.

Since Bitcoins do not represent a claim on the issuer and they aren’t necessarily issued in exchange for money, they aren’t electronic money. The reason you still have to pay income tax is simply because the law on income tax doesn’t mention money. Any form of income, whether that income consists of money, goods or Bitcoins, is susceptible to being taxed. The problems start when you have to pay these taxes though, because the Dutch tax office only accepts money. Your revenue will somehow have to be valued in euro before you can calculate how much you have to pay.

I can well imagine that the belastingdienst (tax office) isn’t going to chase down small time Bitcoin users just yet. I remember the first time I became self-employed and asked the belastingdienst for a VAT number. The man on the other end of the line laughed at me and said they could not be bothered to issue me my number for the couple of hundred guilders I expected to make that year.

Another complicating matter according to Engelfriet is that Bitcoins aren’t financial products either. That would mean you will have to pay VAT (‘btw’) over the Bitcoins you receive, which would make trading in Bitcoins less attractive for the Dutch.

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January 27, 2013

Man puts 60,000 euro on car roof for a moment, forgets about it

Filed under: Weird by Branko Collin @ 3:39 pm

What do you do if you don’t trust the banks? You keep your money under your mattress.

What do you do next if you don’t trust the locks on the doors of your house? According to Noordhollands Dagblad, this was the dilemma that faced a businessman from Sint Pancras near Alkmaar.

Last week the man claimed he decided to bring the 60,000 euro he had saved over the years to the bank. The man claimed he left the envelope with what he claimed were 120 bills of 500 euro on the roof of his car, after which he walked indoors to answer a phone call, or so he claimed.

The envelope with 60,000 euro may be lying somewhere along the road to Alkmaar. Whoever finds the envelope and its contents can expect a 10,000 euro reward says the newspaper. Noordhollands Dagblad has a couple of interviews with treasure hunters on video.

Today the thaw has set in, so if the envelope is going to be found, it will be today or tomorrow.

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December 9, 2012

Apple iPad is not a phone, Dutch judge says

Filed under: Gadgets,Technology by Branko Collin @ 2:09 pm

Why would you want to ask a court whether an Apple iPad is a phone or a general computer? Well, if computers given as a Christmas bonus are considered income and phones are not, you might have an incentive, especially if the back taxes amount to 323,687 euro.

Broadcaster RTL Nederland gave 664 of its employees an iPad in 2010, including a Vodafone 3G subscription. The law says that something supplied by one’s employer does not count as income if this something is intended “to prevent costs, expenses or depreciations needed for a correct execution of one’s employment”, Arnoud Engelfriet reports.

The law also prescribes categories of devices that are applicable, including “phones, Internet and such communication devices, but not computers, nor similar devices or peripherals”.

RTL Nederland sued the Dutch tax office and the question before the court became whether these iPads were mainly computers or mainly communication devices. The court ruled on 30 November that “considering the format of the iPad (the version the claimants provided has a 9.7 inch screen diagonal) verbal communication should not be seen as the central function of the iPad.”

RTL Nederland will appeal the decision. “We are a media company,” a spokesperson told Webwereld. “We work with those iPads, they are part of our daily business.”

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