The year 2024 is coming to an end, and this is the perfect time to organize your administration and enter 2025 well-prepared. With “Ready for 2025” in mind, it is essential to address your business administration and financial obligations.
Below you will find a checklist that not only keeps your financial administration up to date but also ensures compliance with Dutch regulations and tax standards.
1. Check and Organize Invoices
- Make sure all invoices comply with Dutch invoicing requirements. An invoice must include, among other things, a unique number, the customer’s name and address, your company’s Chamber of Commerce (KvK) number, and a clear VAT specification.
- Check whether all issued invoices have been paid and update any outstanding payments.
- If invoice numbers are missing, you must be able to explain why. This is important to meet the requirements of the Tax Administration and to maintain a clear administration.
2. Document Business Expenses
- Ensure that all business expenses are documented with a receipt or invoice supporting the expense. Under Dutch law, you may only reclaim VAT if you have a correct invoice with a VAT specification.
- Verify that recurring monthly costs, such as phone or internet expenses, are fully and correctly recorded. According to the rules, all costs must be traceable and logically explained.
3. Apply Corrections for Private Use
- When business assets, such as a phone or internet, are also used privately, you are required to apply a correction. The Tax Administration advises using a realistic percentage and recording this in your administration.
- Note the percentage you calculate for business use and include it in the description of the expenses.
4. Automatic Deductions and Contracts
- Add automatic deductions such as bank fees and rent to your administration. For these, you must provide proof, such as a bank statement or a copy of the rental agreement.
- Make sure all such costs are correctly categorized and documented.
5. Mileage Allowance for Private Vehicles
- If you drive business kilometers with a private vehicle, you must keep accurate mileage records. This record must include the date, starting and ending points, and the number of kilometers driven.
- Use the Tax Administration’s established rate of €0.23 per kilometer for business travel and add this amount to your administration under “no VAT.”
6. Double-Check Major Investments
- Check whether all major business purchases, such as computers and other equipment, are correctly recorded in the administration. These must comply with the rules for capitalization and depreciation.
- For investments above a certain amount, additional requirements may apply, such as preparing an asset register.
7. Consider Final Investments
- Check whether you qualify for the Small-Scale Investment Deduction (KIA). This deduction only applies if you have invested at least €2,801 and no more than €353,973, excluding VAT in 2024.
- If you are just below this threshold, it may be beneficial to make an additional business investment before the end of the year. This is a smart way to be “Ready for 2025.”
8. Ensure Completeness When Switching to a New Bookkeeper
- When switching to a new bookkeeper, you are required to provide the annual accounts and income tax return from the previous year. This ensures a correct continuation of your administration.
- Also, provide a detailed asset register of previous investments and depreciation. This is essential to avoid errors or uncertainties in the tax return.
9. Consult Information Sources and Experts
- Use the information available through your bookkeeping software or administration system. Many systems offer helpful explanations for specific questions.
- If you are unsure about tax rules or processing certain data, it is advisable to seek advice from a qualified bookkeeper or tax consultant. This is part of a proactive approach to being “Ready for 2025.”
With these steps, you ensure that your administration is not only organized and complete but also fully compliant with Dutch tax requirements. Start 2025 with confidence and a well-organized administration.
Ready for 2025? Good luck!
