Tax authorities to collect coronavirus debts

This month, the Tax and Customs Administration (Belastingdienst) is starting to collect corona debts from over 35,000 entrepreneurs in the Netherlands. These recovery measures are intended to put an end to the €14.8 billion that still needs to be repaid. Do your clients or do you yourself have corona debts? Then it is important to monitor your own liquidity closely.

What is a corona debt?

Since the beginning of the corona crisis in 2020, approximately 400,000 Dutch entrepreneurs received tax deferral. This deferral was granted to provide extra support to companies during the corona period. In total, this concerns an amount of €47 billion in taxes. Colloquially, this debt to the Tax and Customs Administration is also known as 'corona debt'.

Repayment over five years

Companies that received a deferral do not have to pay the tax debt all at once. The Tax and Customs Administration offered them a payment arrangement and determined that the corona debts must be paid within five years. At the start of the repayment scheme last October 2022, an amount of €19.6 billion was still outstanding.

Of the 226,000 entrepreneurs with a payment arrangement, a group of over 40,000 entrepreneurs has not yet made a single payment. This primarily concerns smaller companies with a debt of less than €10,000.

No response from entrepreneurs

The 35,000 entrepreneurs against whom the Tax and Customs Administration is taking action have not responded to multiple warning letters. The payment arrangement for this group of entrepreneurs has also since lapsed. The Tax and Customs Administration is starting by approaching entrepreneurs who already had debts before the corona pandemic. Moreover, a formal notice is always sent first, followed by a writ of execution. Only if there is no response to that either will the Tax and Customs Administration send a bailiff.

Outgoing State Secretary for Fiscal Affairs and the Tax and Customs Administration Marnix van Rij stated that from September 2023, more recovery letters will be sent to entrepreneurs with structural payment arrears.

Possibly even more debts

Despite the fact that the Tax and Customs Administration is taking action, it primarily wants to get in touch with the entrepreneurs to find a solution. For example, the Tax and Customs Administration does not know what needs to be paid to other parties.

In addition to repaying taxes, some entrepreneurs also have to pay off other corona debts, such as the Fixed Costs Contribution (TVL) or the NOW scheme from the UWV. Add to that the current economic situation with significant inflation, and it will come as no surprise that some entrepreneurs are struggling heavily.

Always seek a sustainable solution

The corona period has taken a heavy toll on many people and companies. Therefore, it is important to handle this respectfully and look for a sustainable solution.

Arjan Stigter, CEO of Ultimoo Incasso, also emphasizes the need for a solution that works for both parties. "An outstanding invoice is unpleasant for both the principal and the client. If one of the parties is dealing with a corona debt, it is vital that this is handled properly. This means clear agreements must be made, but it must be possible to speak about it in a respectful manner. A solution that does not work for one of the two parties damages the client relationship and, furthermore, does not solve the debt."

I am suffering from corona debts, what now?

If you as an entrepreneur are suffering from corona debts, it is very important that you keep your own liquidity up to standard. If your client does not pay an invoice (on time), you must take action immediately. If payment remains outstanding after sending a payment reminder, it is advisable to take measures right away.

I think my client is suffering from corona debts, what now?

If you suspect that one of your clients is suffering from a corona debt, it is also important not to wait too long. Of course, you can have understanding for your client's situation, but your client's situation must not become your problem. That is why it is important to stay on top of your outstanding invoices. Send a payment reminder in time and seek contact with your client to find a solution that works for both parties.

Professional party to mediate

Entrepreneurs dealing with non-paying clients can create a free account at incasso.nl. Via incasso.nl, you can submit an invoice quickly and easily and start a collection trajectory. In over 90% of cases, the payment arrears are resolved without the intervention of a judge. Our collection specialists act according to the guidelines of the NVI and will collect the debt in a decisive but respectful manner. Moreover, we have a lot of information about the financial situation of many Dutch companies and individuals. That way, we can professionally assist you in reducing your payment arrears.