Bookkeeping for freelance translators and interpreters: VAT, EU clients and sworn status

VAT per client type

Translating and interpreting are services at the standard rate of 21 percent. If you work for a business in another EU country with a valid VAT number, you reverse-charge the VAT: you invoice without VAT, state 'VAT reverse-charged' and your client's VAT number, and you report the revenue in box 3b and in the EU sales listing. Check that number first via VIES. The full overview is in VAT with foreign clients.

Translating books, such as a novel or non-fiction title for a publisher, is a different matter: it falls under the VAT exemption for writers. You charge no VAT on it, but you cannot deduct the VAT on costs relating to that work either; if you also do taxable translation work, you split your input VAT. Business texts, websites, manuals and brochures remain subject to 21 percent. If you are unsure whether an assignment falls under the exemption, check before invoicing without VAT.

Sworn translator or interpreter

For official translations and interpreting for the police, courts and other government bodies, you must be sworn and entered in the national register of sworn interpreters and translators. That comes with requirements for training, language level, integrity and periodic re-registration with proof of continuing education and work experience. The costs of registration, swearing in, a certificate of good conduct and mandatory courses are all deductible business costs.

Memberships of a professional association, dictionaries and professional literature are deductible too; what exactly qualifies is covered in professional literature, memberships and subscriptions. If you interpret on location using your own car, you claim € 0.25 per business kilometre as a cost, separate from what you charge your client for travel.

Tools, subscriptions and your workplace

Translation software, terminology databases, machine translation on subscription and a good headset for remote interpreting are ordinary business costs. You deduct a subscription at once; if you buy a multi-year licence costing more than € 450, you capitalise it and depreciate it. Much of that software comes from suppliers in other EU countries or beyond, and then the VAT is reverse-charged to you. How to process that in your return is covered in VAT on invoices from Google, Meta and other foreign suppliers.

You depreciate your laptop and second screen in proportion to business use. A study in your own home is not deductible for most translators, but the furnishings, your desk chair and your internet subscription in proportion to business use are. If you work with confidential documents, well-secured storage belongs in the budget too.

Rates, currency and a mixed quarter

Translators usually charge per word or per line, interpreters per hour or half-day, often with a minimum fee. Work out for yourself what you keep per hour, including revision, terminology research and admin, see setting your hourly rate. If you invoice in dollars or pounds, record every invoice and receipt in euro, as described in invoicing in foreign currency.

Because your clients are treated differently, it is smart to set the right VAT type per client in your bookkeeping software. The program then automatically chooses 21 percent, reverse-charged or no Dutch VAT, and your return matches your EU sales listing.

Frequently asked questions