What is a VAR statement?

As a zzp'er, in many cases you need a declaration of employment relationship (VAR) from the tax authorities. But what exactly is a VAR declaration and how do you get one?

Profit from business (VAR-wuo)

With a VAR-wuo you determine that your salary is the profit from business. You are then regarded as an independent entrepreneur by the tax authorities. The principal therefore does not have to pay payroll tax and contributions. A self-employed entrepreneur with a VAR-wuo cannot claim benefits in case of illness or unemployment.

Results from other activities (VAR-row)

This VAR-declaration does not clarify whether payroll taxes need to be withheld. It is of little use to you as an independent professional: you are less likely to be chosen for an assignment with a VAR-wuo. In the case of an assignment with a VAR-wuo, a principal must find out for himself whether or not he has to withhold and pay payroll taxes.

Director-major shareholder VAR (VAR-dga)

You get a VAR-dga if you own at least five percent of the shares in a company. The income and risks, i.e. insurance and payroll taxes, come from your company.

Wage from employment (VAR-loon)

If there is an employment relationship, the client hires the contractor, so to speak.The principal pays the payroll taxes and premiums. This declaration is therefore of little use to you as an independent professional.

New VAR called BGL

The VAR-declaration will probably be replaced by the Beschikking geen loonheffing (BGL) halfway through 2015.Until then, you still need a VAR-declaration if the client asks for it.With the BGL, both client and contractor become responsible for the question of whether an employment relationship actually exists. As a self-employed person, you must apply for the BGL yourself. For this you have to answer a few questions online and if this leads to a 'Decision No Payroll Tax', it will state under which conditions the assignment must be performed.The client must check this.After the introduction of the BGL, the self-employed person does not have to apply for a new order for every assignment: it can always be used for assignments where the work, the facts and circumstances and the conditions are the same.