Personnel: Declaration of Independent
Contractor Status (VAR) no longer
required
As of 1 May 2016, self-employed persons without employees will no longer
require the Declaration of Independent Contractor Status (VAR). It will be
replaced by standard contracts of the tax authorities. How can you, as a
client, prevent to be deemed an employer and later be confronted with wage
tax and national insurance contributions and employment protection?
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About the author:
Gelske Speerstra advises and represents national and
international companies in all facets of their business
operations. She specializes in employment law, employee
participation and flexible employment relationships.
Clients and contractors responsible for correct tax qualification of the of the
working relationship
By the introduction of the Assessment of Employment Deregulations Act clients and
contractors are jointly responsible for the correct tax qualification of the working
relationship. If it becomes apparent in retrospect that incorrectly no wage tax and
national insurance contributions were paid, the tax authorities may impose
additional taxes on the client. The existence of an employment contract may also
have other consequences, such as the obligation to continue payment of wages in
the event of sickness and the protection against dismissal for the employee.
Standard contracts of the tax authorities
The tax authorities drafted standard contracts providing the client with certainty that
no wage tax and national insurance contributions have to be deducted. However, it
is important that the work will be performed in accordance with the agreements
provided for in the standard contracts.
Another possibility is to submit a contract to the tax authorities you drafted yourself.
The tax authorities will then assess the contract and give information as to whether
the client has to deduct and pay wage tax and national insurance contributions.
It is not mandatory to make use of a standard contract or a contract assessed by
the tax authorities. However, you will take a higher risk to be due wage tax and
national insurance contributions.
Implementation deadline
Clients and contractors will have time until 1 May 2017 to adjust their method of
working and contracts. During this period the tax authorities will exercise restraint.
Action

Make sure to check agreements to provide service made with self-employed
persons without employees.

If necessary, replace these by a standard contract of the tax authorities in
order to prevent the additional collection of wage tax and national
insurance contributions.

Have the consequences relating to employment law checked in the event
the tax authorities disapprove of an agreement to provide service made
with a self-employed person without employees.
More information
Would you like to learn more about the non-requirement of the VAR? Or do you have
any other questions on bringing in self-employed persons without employees?
Please contact:
Gelske Speerstra, LL.M. ([email protected]).