This article covers the following topics

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Responsibilities

As a student self-employed, you have several responsibilities:

  1. Payment of social contributions: You pay social contributions based on your net taxable income. These are lower than those of a self-employed person; you can even apply for an exemption for this. 
  2. Personal income tax: As a self-employed person, you have to file a tax return every year and pay taxes on your income. Tax exemption: €10.160 (assessment year 2024)
  3. The VAT return: If your annual turnover does not exceed €25,000 (excluding VAT), you can claim VAT exemption. 
  4. Keeping accounts: Keep your invoices for seven years. This is necessary for tax returns and to comply with legal obligations.


1. Payment of social contributions

As a self-employed person, you pay quarterly social contributions to your social insurance fund. For the first three years, as a starter, you pay provisional contributions. This depends on how much you earn annually. You can apply for exemption from the provisional contributions if you already know in advance that your income will not exceed the €8,204.59 limit. Read more about the social contribution here.


Exemption: income lower than €8,204.59


2. Personal income tax

Personal income tax is a tax you have to pay on your taxable annual income. You file this tax return every year, for the previous financial year. This means that in 2024 you file a tax return on your income in 2023. Every taxpayer is entitled to a tax-free sum: a basic amount (at least €10,160 for the assessment year 2024) on which you pay no taxes. Read more about personal income tax here.


Tax-free sum: €10,160


3. The VAT return

As a self-employed person, you file a VAT return every quarter or every month. In the VAT return, you state how much VAT you have received and paid that quarter. Then it is calculated whether you will receive a VAT refund or have to pay VAT. As a self-employed student, you can apply for an exemption if your annual turnover does not exceed €25,000 (excl. VAT). Read more about the VAT return here.


Exemption: income lower than €25,000



4. Keeping accounting records

You are responsible for keeping your own records. This is because you need to have this in good order for FPS Finance. To start, it is important to keep your invoices in good order. You need your invoices when filing your tax return, so you know exactly what your turnover is. In addition, you also need to keep good records of your receipts and the costs incurred so that you can report your business expenses when filing your tax return. Note: even after you have filed your tax return, you should keep your invoices well. You are required by law to keep your records for seven years.


Make sure you create an extra folder on your laptop where you can easily store all your invoices.