Tax settlement with Tax and Customs Administration

If you have a business in the Netherlands and you wish to cease trading or transfer your business (or a part of your business), you must settle with the Dutch Tax and Customs Administration (Belastingdienst). This applies as well in case of business succession within the family, divorce or death of your partner. It is sensible to seek the advice of an expert or to contact the Tax and Customs Administration.

Winding up your business

If your business ceases trading, you must report this to the Chamber of Commerce (Kamer van Koophandel). Next, the Chamber of Commerce will pass on your notification to the Tax and Customs Administration. You will receive written confirmation of this. You must:

• check whether you have received the confirmation of your deregistration. If you have not received such a confirmation, you must yourself inform the Tax and Customs Administration about the fact that your business has ceased trading;
• close the accounts of your discontinued business;
• file the annual reports and accounts up to and including the cessation date as soon as possible;
• make a final calculation and then submit a final VAT return.

Withdrawal goods for private use

If you withdraw goods from the business for private use, you must pay VAT as normal in respect of these goods.

Sale of your business

If you transfer your business (or a part of your business), you calculate the discontinuation profit (stakingswinst) and pay income tax on that amount. As well as being important for income tax, wage tax and VAT purposes, the transfer of your business may also have capital gains tax consequences or affect social insurance benefits.

Family succession

A business succession within the family involves various tax aspects, such as discontinuation relief, transfer schemes, gift tax and partial remission.

Death or divorce

If you are in the process of a divorce or your partner has died, the Tax and Customs Administration assumes that the assets are transferred to you at market value. You have to calculate discontinuation profit. However, if you continue your spouse’s or partner’s share in the business, a transfer facility will apply and you do not need to calculate discontinuation profit. You can continue the business with the same book values.