Once you have found yourself a substitute, this person will work in your name. The client entered into an agreement with and you signed a new agreement with your substitute. Because of this, you will receive an invoice with the income you would have made on the shift and the costs you will have paid to your substitute. The total amount on the invoice will, therefore, become € 0,-.
For example, Bob works for € 121,- including VAT at the Hilton Hotel. Bob is no longer available on that day and Sophie is going to be his substitute. Sophie will enter into an agreement with Bob under the same circumstances as the initial shift. Sophie will receive € 121,- from Bob. Bob will receive an invoice from the Hilton Hotel, which he will, in turn, pay Sophie with. For this reason, Bob will also receive an invoice with the costs of € 121,-. The platform will make sure that this payment goes straight to Sophie. The invoice will use the income and the costs to balance it out for it to become € 0,-.
The payment will be done by Finqle and will be transferred directly to the substitute. You don’t have to do anything for it.
What about my turnover tax declaration?
Your financial overview shows you ‘substitution costs’ under the ‘costs’ header. If you take a look at the example above, these are the costs for your substitution Sophie. The income you would have received from the Hilton Hotel, will be added to your turn over of that quarter. The total of these costs will still amount to € 0,-.
The VAT that you pay on top of these costs is something you can add to your tax declaration. This is called tax reduction. This could result in you having to pay fewer taxes.
For example, Bob’s turn over for this quarter was € 600,-. The VAT that he received on this amounts to € 126,-. Bob has to pay this amount to the Tax Authorities. Bob has paid € 21,- of VAT on top of the costs of his substitute Sophie. You are allowed to deduct the VAT paid over your costs from the amount you owe the Tax Authorities. You can fill this in under ‘voorbelasting’ (tax reduction). According to Bob’s turn over tax declaration, he now owes the Tax Authorities: € 126,- minus € 21,- = € 105,-.