When does the inspector speak of entrepreneurship? Am I a self-employed professional, freelancer or an employee?
What other requirements are there to qualify as an independent entrepreneur?
To check if you meet the requirements you can ask yourself the following questions:
*Can we speak of market orientated operating?
*Can we speak of organisation of work and capital?
*Can we speak of risk?
*Can we speak of prospect of profit?
If you can answer the questions predominantly with yes, we can usually speak of independent entrepreneurship.
When am I not an entrepreneur?
You are not an entrepreneur if you are in employment or if you are a recipient of income from other activities.
When am I in employment?
You are in employment when (a) a relationship of authority exists between you and your client, (b) you receive a salary and (c) you carry out work for your client. Sometimes, however, there is no case of a relationship of authority, but we can still speak of employment.
When am I a Freelancer? (= recipient of income from other activities)
If the case may be that you are not an independent entrepreneur and you carry out assignments that cannot be considered employment, then we can speak of receiving income from other activities and you are a Freelancer.
Entrepreneurship
It does not necessarily mean that the tax authorities consider you an entrepreneur if you have your own enterprise. This is of importance when applying various fiscal regulations. Recipients of income from other activities/Freelancers are not considered as an entrepreneur. When deciding the question whether or not you are an entrepreneur a number of aspect play a part. First, the question if there is a case of employment, for this the relationship between you and your client is of importance.
The relationship between you and your client can be approached in three different ways
*In employment and fictitious employment;
*entrepreneurship: contractor and client;
*Receiving of income from other activities.
We can speak of employment if there is a relationship of authority, a personal work obligation and an obligation of paying wages. Simply put, we can speak of a relationship of authority if a boss determines how late, when, where and how you carry out your work. In this situation the client is considered an employer and he/she is the withholding entity for social premiums and pay roll tax.
Exception:
Sometimes we can speak of employment when there is no case of a relationship of authority, this a matter of fictitious employment. This applies to, for example, artist who have short (less than three months) of employment. If the relationship is indicated as fictitious employment and you own a VAR-Wuo, then the fictitious employment does not apply and you are considered an entrepreneur.
If, while carrying out work, there is no relationship of authority or fictitious employment, then possibly, we can speak of independent entrepreneurship. Requirements are set up for independent entrepreneurship, which we will discuss below.
There has to be a case of market orientation, organisation of work and capital, entrepreneurial risk and a prospect of profit. To test these criteria you can ask yourself a few questions.
Can we speak of market orientated operating?
*Can we speak of organisation of work and capital?
*Are there operating assets?
*Do you have a workspace?
*Do you have to carry out work in order to obtain profit?
Can we speak of risk?
*Is there a possibility that you cannot bring in the contract?
*Is there a risk that you cannot earn back you investments?
*Is there a risk that debtors cannot pay you?
Can we speak of prospect of profit?
*Do you aim for profit?
*Can, within reason a source of income be expected within some time?
If you can answer the question predominantly with yes, we can usually speak of independent entrepreneurship.