Another annual obligation: reporting amounts paid to third parties. You must do this in respect of amounts paid out in 2017 before 1 February 2018 (For 2017, the Tax and Customs Administration extended this deadline on a one-off basis to 1 March 2018).
Amounts paid to third parties
This concerns payments made to people for work carried out. You only need to declare amounts paid to third parties if the person to whom you made the payment:
- was not employed by you;
- didn’t work out as an entrepreneur.
For payments to volunteers, which, for tax purposes, volunteer scheme In such cases, there is no need to declare amounts paid to third parties. Nor is this necessary if you can demonstrate that, within the tax rules, you have reimbursed only actual expenses.
Digital only now
You must report amounts paid to third parties using form IB47. This form can only be submitted electronically. To do so, you must register with the designated data portal. You will need to ask the tax authorities to provide you with the login details for this. Make sure you request these details in good time.
The Tax and Customs Administration uses the information from the IB47 forms for the income tax returns of the people to whom you have paid the amounts. The amounts received are usually taxed as income from other work. Submitting the data digitally makes it possible to include the information in the pre-filled tax return (VIA).
Not compulsory
In our article Statement of amounts paid to third parties We explain that the Tax and Customs Administration takes the view that you are obliged to submit the return. This is stated by the Tax and Customs Administration in the Payroll Tax Handbook. However, there does not appear to be a sound legal basis for this obligation.