Obligation to inform replaces IB47 declaration

Relatively small job

This kind of work is considered by the Tax Authorities as ‘relatively small jobs’, which do have to be declared. Until 1 January 2021, the IB47 form (statement of amounts paid to third parties) could be used for this purpose.
The introduction of the General Data Protection Regulation Act (AVG) on 25 May 2018 means that the use of the BSN number on the IB47 form is no longer permitted. The legislator has now overcome this by replacing part of the IB47 form with the obligation to provide information as of 1 January 2021.

The obligation to disclose information means that companies, organisations and foundations must provide the tax authorities with vital information. However, private individuals are also sometimes required to do so. For example, if they pay someone for cleaning, (garden) maintenance, renovations or other work and do not receive an invoice for it.
An example of the obligation to provide information is that banks in the Netherlands pass on information about bank accounts to the Tax Authorities. The obligation to disclose information has given the BSN number a legal basis.

Who has to file the tax return?

The new disclosure obligation applies to two groups of persons obliged to keep records. The first group consists of the persons withholding taxes on wages. The new notification obligation applies when the withholding agent makes a payment to a natural person for work and services that are performed for either the withholding agent itself or an organisation affiliated with the withholding agent. Daarnaast geldt de renseigneringsverplichting voor betalingen aan rechthebbenden door collectieve beheersorganisaties (cbo’s). Examples of a CS are Buma-Stemra and Stichting Reprorecht. The second group

As a content payer you are obliged to provide the following data if there are payments to third parties:

The amounts paid in the calendar year including any cost reimbursements.

• The Citizen Service Number
• Your name
• Your address
• Date of birth

If you are a non-contributor, the following points are important:

• If the Tax Authorities ask for it, you are obliged to supply the data on amounts paid to third parties to the Tax Authorities.
• If the Tax and Customs Administration does not ask you to do so, you may submit the data on amounts paid to third parties to the Tax and Customs Administration.
• You may not register the Burgerservicenummer of persons to whom you have paid one or more amounts. Therefore you are not allowed to submit the BSN number to the Tax Authorities either.
• However, you must register the name, address and date of birth of the persons to whom you have made one or more payments.

Please note! As from 1 January 2022, the Tax and Customs Administration will no longer invite you to submit data on amounts paid to third parties. As from this date you are obliged to do so.

Exceptions to the obligation to provide information

The purpose of the rule is to collect information on payments that are expected to belong to the taxable result from other activities. Therefore payments with respect to certain activities and services are excluded from the obligation. For withholding agents for the wage tax this concerns:

• activities and services that have been performed as an employee, artist, professional sportsman, or member of a foreign company as referred to in the Wages and Salaries Tax Act 1964 or as a resident of another country who, in the capacity of artist, professional sportsman, or member of a company, is not liable to pay tax in the Netherlands;
  
• the activities performed as a volunteer as referred to in the Wages and Salaries Tax Act 1964; and
  
• the activities and services for which an invoice has been issued as referred to in the Turnover Tax Act 1968 on which the turnover tax has been mentioned.

When to submit?

Although the obligation to report to the tax authorities takes effect as of 1 January 2022, the new data delivery will actually take place for the first time between 1 January 2023 and 31 January 2023. The withholding agent can therefore only submit the 2022 data to the Tax and Customs Administration after the end of the calendar year and no later than 31 January 2023.

The new reporting obligation will be completely digital. The Tax and Customs Administration is still drawing up a manual that describes in detail how parties with administrative duties must provide the data. This manual is expected to be published on the website Support Digital Messaging (OBD) of the Tax Authorities.

More information?

For Joost it was perfectly clear that he had to submit the amounts paid to Vincent to the Belastingdienst. Vincent could therefore report the amounts received via his income tax return under the heading ‘other activities’.

Should you have any questions as a result of the above or should you require further information, please do not hesitate to contact us via info@aame.nl of 0152158815.