Invoice and payroll etc for 6 month IT contract in The Netherlands?

[SomeRandomer]

Hi,

I'm a software engineer based in Dublin and have just been offered a 6 month contract in The Hague from October 1st. I only recently arrived back in Ireland after several yeas living abroad and don't have my own company.

The contract may or may not be renewed after 6 months so I'll assume for now that it'll be just the 6 months.

I will be paid by a recruitment agency based in Belgium and they are looking for details of my company, so I'm wondering what's the best thing to do.

- Should I set up my own company or use an umbrella service?
- Are there any implications being based in Ireland and invoicing an EU company for IT services?
- How much could I expect to pay for an umbrella service?
- Anything else I should be aware of?

Thanks in advance.

 

[azerogo]

Have a chat with Fenero, this is what they do https://fenero.ie/contractor-solutions/

Have used them over the years, always excellent.

 

[argolis]

I would be pretty sure it's not worth setting up your own company, unless you were planning on continuing to stay on contract. For now, and to get you onto your feet quickly, I would second the advice of using an umbrella company like Fenero until you know what your medium/long-term plans are.

They may also be able to advise you about VAT, employment and tax issues arising from the Belgium/Netherlands/Ireland combination. I am contracted to a Belgian agency but Irish law applies to everything I do, as I'm employed/director of the Irish company that I contract through. I know there's significant differences for freelancers in employment and agency laws in Belgium though and if you're physically going to be in the Netherlands, you should research what impact that has on employment issues/taxes/etc.

I don't charge VAT to my Belgian agency as it's an intra-EU supply of services. Other than charging zero VAT, I don't think there's much operational difference than being contracted to an Irish agency tbh. From what I've experienced so far, Belgian agencies are thankfully more transparent about what they charge you. They might tell you exactly the percentage cut they're taking - 15% on average from I've seen - whereas my experience of Irish agencies is totally black box. They push your price down and push the buyer side up with different stories, to make as big a middleman cut for themselves as they can. I know one person who got fleeced with 50% being taken by the agency.

More info on the VAT here:

Cross-border VAT rates in Europe - Your Europe

VAT charging and refunds when selling goods and services inside and outside the EU. VAT rates in Europe, selling to businesses and consumers, exemptions

europa.eu

 

[SomeRandomer]

Thanks for the replies. I just found out yesterday that the role will be until July next year so 10 months in total. I'm still trying to find out what obligations I'll have in The Netherlands, i.e. should I be paying tax there etc. And if so should I be setting up a company there instead of here.

I am contracted to a Belgian agency but Irish law applies to everything I do, as I'm employed/director of the Irish company that I contract through. I know there's significant differences for freelancers in employment and agency laws in Belgium though and if you're physically going to be in the Netherlands, you should research what impact that has on employment issues/taxes/etc.

Do you work from Ireland or travel to Belgium and work on site? Totally agree re agencies in Ireland, it's real cloak and dagger stuff here. I lived in Switzerland in the past and they're pretty transparent about the perentage they take.

 

[argolis]

Just to preface this: this is just opinion and you should check with a professional.

I'm based in Ireland and work exclusively here so it's actually a lot simpler than your case. I do know several other contractors who have operated in Ireland using UK-based companies contracted to various agencies in Belgium and it doesn't seem to have ever been an issue.

You could ask the agency about whether they have a problem with you billing them from an Irish company and it will likely not be an issue for them. However, your situation is more complicated as you'll be boots-on-the-ground in the Netherlands and I don't know what implications that would have, which is where you'd need the professional advice. It's possible you'd be required to use Netherlands-based company for employment rights reasons but I wouldn't think so. I would guess, at most, your Irish company would just have to comply with local laws is all. Being a part of the EU generally results in equality of access for EU companies.