Unable to pay your tax bill: these are your options
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
If you cannot pay an assessment, request a short deferral of up to 4 months by phone with a debt below € 20,000, or apply in writing for a payment plan of up to 12 months.
- On the outstanding debt you pay 4.3 per cent collection interest since 1 January 2026, up from 4 per cent.
- Always file on time even if you cannot pay: filing late and paying late are separate defaults each with its own penalty.
- As a BV director you must report inability to pay payroll taxes or VAT in writing within two weeks, or risk personal liability.
- Call before the final payment date: as long as no enforcement order exists you keep every option and the costs stay limited.
A disappointing month, a client paying late, and right then the income tax or VAT assessment lands on your doormat. It happens to more entrepreneurs than you think. The key point: doing nothing is the most expensive option. The tax authorities are more cooperative than many freelancers expect, provided you raise your hand in time. These are your options, in order of simplicity.
Always: still file your return
Being unable to pay is no reason to postpone your return. File on time and you avoid a default penalty and keep things clean: there is then only a payment issue, not a filing issue. That makes every next step easier.
Short deferral or a payment plan
For smaller debts you can request a short deferral by phone: you then get up to four months after the final payment date, without paperwork. The conditions are that your total tax debt stays below 20,000 euros, that no enforcement orders are outstanding and that your returns have been filed. If that is not enough, apply in writing for a payment plan of up to twelve months, spreading the assessment into instalments.
If twelve months is too short and the problems are temporary at a fundamentally healthy business, tailored arrangements exist for a longer period. For those the tax authorities do ask for substantiation, and for larger debts a statement from an external expert.
| Option | Duration | How to arrange it |
|---|---|---|
| Short deferral by phone | Up to 4 months | A phone call, debt below € 20,000 |
| Payment plan | Up to 12 months | Written request using a form |
| Tailored plan for special circumstances | Longer than 12 months | A substantiated request, often with an expert statement |
| Lowering your provisional assessment | Immediate effect on your monthly amount | Adjust it yourself in Mijn Belastingdienst |
What does a deferral cost you?
You pay collection interest on the outstanding debt. As of 1 January 2026 that stands at 4.3 per cent, against 4 per cent before. A deferral is not free credit, but it is many times cheaper than the reminders, enforcement order and bailiff costs that follow if you do nothing.
Note the difference with tax interest: that runs when your return or assessment is late or too low, and stands at 5 per cent in 2026. Collection interest is purely about paying late.
Worked example: € 6,000 in twelve instalments
- Assessment you cannot pay in one go
- € 6,000
- Instalment per month
- € 500
- Collection interest of 4.3% on the average outstanding balance
- around € 140 over the full year
Result: Roughly € 12 a month in interest. Do nothing and reminder charges and an enforcement order are added, and those rise far faster
What happens if you do nothing
Collection follows fixed steps, and each step costs money. First a reminder, then an enforcement order with charges, and eventually attachment of your bank account, your assets or your debtors. With an enforcement order, bailiff costs are for your account too.
Do you have a BV? Report inability to pay within two weeks
This is the most expensive mistake directors make. If your BV cannot pay payroll taxes or VAT, you must report that in writing to the tax authorities within two weeks of the day the tax should have been paid. Miss that window and you can be held personally liable as a director for your BV's debt, with the burden on you to prove it was not your fault. The notification takes five minutes and protects your private assets.
Preventing this next year
Nearly every payment problem among freelancers comes from the same corner: the VAT you received went to other things, or the provisional assessment is based on a profit you are no longer making. Both can be prevented with a few fixed habits.
- Set aside the VAT you receive on a separate account straight away. That money is not yours.
- Also reserve thirty to forty per cent of your profit for income tax; see how much to set aside.
- If profit disappoints, have your provisional assessment lowered immediately. That eases your monthly outgoings right away.
- Invoice faster and watch your payment terms; many payment problems are really debtor problems.
- Build a buffer of three months of fixed costs, so one disappointing month does not immediately become a problem with the tax authorities.
Frequently asked questions
Do I get a penalty if I pay my assessment late?
For VAT and payroll taxes you can receive a late-payment penalty. More important is that your return is filed on time: a filing default is a separate penalty that is easy to avoid, even if you cannot pay.
How much collection interest do I pay in 2026?
4.3 per cent a year on the outstanding amount, since 1 January 2026. Before that it was 4 per cent. Tax interest, which runs on a late or understated return, is 5 per cent in 2026.
Can I get a deferral for VAT?
Yes, VAT assessments also fall under short deferrals and payment plans. You must have filed your return, though; a payment deferral is never a filing deferral.
What if I cannot meet the instalments of my plan either?
Get in touch before you miss an instalment. If a plan collapses without consultation it is withdrawn and collection resumes immediately. Reporting in advance often still results in an adjusted arrangement.
As a BV, must I report inability to pay?
Yes, within two weeks of the day the payroll taxes or VAT should have been paid. Forget it and you risk personal director's liability for your BV's debt.
Can my tax debt be waived?
For entrepreneurs almost never for business taxes. What does exist is a restructuring agreement in which the tax authorities participate if other creditors do too. Get guidance for that.
Sources
- Deferral of payment: short deferral and payment planBelastingdienst · belastingdienst.nl
- Collection interest percentagesBelastingdienst · belastingdienst.nl
- Tax interest percentagesBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
