When you earn money you have to pay income tax in The Netherlands. This also applies to sex workers. What sort of tax depends on your circumstances.
Working from home
When you work from home you are registered by the tax authorities as being self-employed, so you are accountable for your tax return. Some work related expenses are deductible, which means you can subtract these expenses to reduce the amount of income that is subject to tax.
A window prostitute is regarded as self-employed. Self-employed workers must first register with the Chamber of Commerce (Dutch: Kamer van Koophandel (www.kvk.nl). Through them you are registered with the tax collectors office (Belastingdienst). Next you will receive a letter with information about when to report your VAT and income. This means you will have to report the amount of money you have earned. You can subtract some work-related expenses (with the exception of clothes and items of personal care) from the amount of money you have earned (your return). You should report VAT every three months. Once a year you should also report your income. An accountant or bookkeeper could do this for you. For a correct account, in which you keep track of all VAT and expenses, you will need an account book or ledger. Click here for an Example of Cash Book .
Club or private sex house
As of 1 July 2008 the tax collectors office has made it possible to opt in. This opting-in means working under certain terms and conditions. Most owners work this way. Your income tax is paid through the owner of the club or the private house. You are not an employee but you do receive an account of your earnings and payments. It may mean that you still have to report your income once a year. To be able to opt in you need a registered home address and a national identity number (BSN).
With some clubs and private houses you can work in paid employment, so you work on a salary. The owner reports your income tax.
What possibilities are there, when there is no opportunity of opting-in or of paid employment?
Self-employment could be an option. The tax office will take your working conditions into account. The same rules as for window prostitution apply.
There are four possibilities:
- Opt-in (working under certain terms and conditions). The same rules apply as in the case of a club or private house.
- You are employed with the escort service. This is fairly unusual. Tax is paid by the employer. You will have to report income tax once a year.
- You are with an escort service, but you are self-employed. Your working conditions are taken into account. As is the case with window prostitution, you pay tax.
- You are fully self-employed, you do not work through an escort service. You are registered with the tax office as self-employed. You are yourself accountable for tax to be paid.
Please note: As a self-employed escort you will need a license almost anywhere in The Netherlands. This also applies when you work from home. In some towns you will not need a license, so it depends on the town. Contact the town council (anonymously if you wish).
On the street
The tax office will regard working on the street as self-employment, so you are accountable for tax paying yourself.
For more information, check www.belastingdienst.nl (tax collectors office).