Straight-talk guide for hobbyists, side-hustlers and “try-out” freelancers in the Netherlands

1. What “unregistered” means in NL

“Unregistered” means you have not registered with the Chamber of Commerce / KVK Handelsregister. You do not have a KVK number.

You are working as a private individual, not through a registered business structure such as an eenmanszaak or BV.

KVK says you must register if you meet the entrepreneur criteria. In simple terms, this means:

• you independently provide, or prepare to provide, products or services;

• you charge a price that allows you to make money;

• you work for people beyond only friends or family.

If the answer is unclear, KVK also looks at practical signals such as whether you invest time or money, work regularly, have more than one client, and decide yourself how, where and when you work.
Source: KVK — Moet je je bedrijf inschrijven bij KVK? and Ondernemersplein — Wanneer bent u ondernemer?

Important: unregistered does not mean tax-free. The Belastingdienst may still treat your income as taxable income. In some cases, it may also treat you as an entrepreneur for VAT purposes.

Clients can pay into your personal bank account, but using a separate bank account or sub-account is smart bookkeeping.

Result: until you register, you are not a registered eenmanszaak. You are simply acting as yourself, with full personal risk.

2. Money, invoices and taxes

Income tax

Report your earnings in your annual income tax return.

If the work is occasional and you are not an entrepreneur for income tax, the income is usually reported as inkomsten uit overig werk / resultaat uit overige werkzaamheden.

You may usually deduct costs that are directly connected to that income.
Source: Belastingdienst — Wat zijn inkomsten uit overig werk?

VAT / BTW

Do not charge VAT if you do not have a VAT number.

KVK says:

• If you are not registered with KVK but you do have a btw-nummer, you can send an invoice.

• If you have no btw-nummer and you stay below the Belastingdienst registration threshold, you can use a kwitantie as proof of payment instead of a VAT invoice.

• Your income still needs to be declared for tax.

Source: KVK — Veelgestelde vragen over starten

The Belastingdienst registration threshold for very small VAT entrepreneurs is currently €2,200 turnover per calendar year, but this threshold is limited. You cannot use it if you are required to register with KVK or if you have already registered as a VAT entrepreneur.
Source: Belastingdienst — Registratiedrempel voor kleine ondernemers

Small-business VAT scheme / KOR

The KOR is an optional VAT exemption for small businesses.

You may qualify if:

• you are an entrepreneur for VAT;

• your business is established in the Netherlands;

• your turnover is no more than €20,000 per calendar year.

If you use the KOR:

• you do not charge VAT to customers;

• you usually do not file VAT returns;

• you cannot reclaim VAT on business expenses.

You can only apply for the KOR after you are registered as a VAT entrepreneur and have received your VAT details.
Sources: Business.gov.nl — Dutch small businesses scheme and Belastingdienst — Kleineondernemersregeling

3. Pros of staying unregistered

• €0 KVK registration fee. A normal KVK registration currently costs €85.15.
  Source: KVK — Inschrijfvergoeding

• Less admin. If you stay outside the VAT system, you avoid regular VAT returns.

• Fast start and stop. This can work well for testing an idea, doing a one-off project, or validating a small side hustle.

• Useful for small experiments. If your activity is low-risk, irregular, and low-profit, staying unregistered can be practical.

4. Cons and risks

Personal liability

You carry the risk personally. If something goes wrong, a client or third party may claim against you personally.

Important: an eenmanszaak also does not give liability protection. A BV can give more separation, but even with a BV there are exceptions, especially for director liability or bad management.

You may be legally required to register

If you meet the KVK entrepreneur criteria and do not register, you may be breaking Handelsregister rules. KVK says you should register your business one week before or one week after starting business activities.
Source: KVK — Moet je je bedrijf inschrijven bij KVK?

VAT mistakes can become expensive

If you should have registered for VAT but did not, you may face back taxes, correction work, and penalties.

No KVK number can hurt credibility

Some Dutch and EU clients, platforms, and larger companies expect a KVK number before they will work with you.

Invoice limitations

If you do not have a VAT number, you should not issue VAT invoices or add VAT. Use a kwitantie if that fits your situation.

Trade name protection is weaker in practice

Trade name rights in the Netherlands come from active use, not just registration. Using a name publicly can create some protection, but registering and actively using the name makes your position clearer. For stronger Benelux-wide protection, consider a trademark registration through BOIP.
Source: Ondernemersplein — Bedrijfsnaam / handelsnaam vastleggen

Insurance gap

Private liability insurance often does not cover business incidents. Consider:

• AVB / bedrijfsaansprakelijkheidsverzekering for damage to people or property caused during your work;

• BAV / beroepsaansprakelijkheidsverzekering for financial damage caused by professional mistakes, such as wrong advice, faulty calculations, or errors in your work.

Sources: KVK — 10 verzekeringen voor starters and Ondernemersplein — Beroepsaansprakelijkheidsverzekering

False self-employment / Wet DBA

If you have only one client, work under their control, use their tools, follow their schedule, or look like an employee in practice, there may be a schijnzelfstandigheid risk.

The contract matters, but the real working relationship matters more. A model agreement can help, but it does not guarantee safety if the actual work looks like employment.
Source: KVK — Wet DBA: voorkom schijnzelfstandigheid

5. Stay mostly safe checklist

6. Upgrade paths

7. Key takeaways

Small, infrequent, low-profit gigs can often stay unregistered, but the income still has to be reported.

The moment you regularly work independently for profit and meet the KVK criteria, you are expected to register.

No VAT number means no VAT on your invoice. If you have no VAT number and stay below the registration threshold, use a kwitantie instead.

An eenmanszaak is cheap and simple, but it does not protect your personal assets.

A BV gives stronger separation between you and the business, but it has more setup costs, more admin, and director-liability exceptions.

Unregistered is not automatically illegal. Unreported income is the problem. Growing into a real business without registering is also a problem.

Not legal or tax advice. Check your specific situation with KVK, Belastingdienst, or a qualified tax adviser.

Disclaimer: This article was created with assistance from ChatGPT, an AI language model developed by OpenAI.