Netherlands

General Information

In the Netherlands, consumer organisations have for years advised against direct selling. When the old legislation (Colportagewet) came into force in 1975, it was expected that direct selling would disappear from the market soon. Nevertheless, direct selling kept growing and nowadays the members of the Vereniging Directe Verkoop sell at least 126 Million Euro a year (2017), whilst the Consumer-association acknowledges the achievements of the Direct Selling Association and is nowadays collaborating with the Dutch DSA..

In 2014, The Netherlands followed the European Consumer Rights Directive (CRD) – Directive 2011/83 / EU, which is fully implemented in the Consumer Rights Directive Implementation Act in the Civil Code (in Dutch: Implementatiewet richtlijn consumentenrechten in Burgerlijk Wetboek), and which contains all the requirements how to provide consumers with the required information). (This Act replaced the Colportagewet, which is not in force anymore)

 Cooling-off Period
This new law (as a consequence of the imposed European Right Directive) extended the cooling off period to 14 days.

 

Pyramid Schemes
The legislation that forbids pyramid money games is incorporated in the legislation on lotteries. The government has explicitly explained the differences between legitimate multilevel marketing and pyramid money games (i.e., the selling of real products to real consumer at realistic prices, versus paying to obtain the right to hopefully reclaim the investment by recruiting others into the system).

Multi-Level Marketing
No specific legislation on multi-level marketing exists. Multi-level marketing is governed by the same regulations as any other form of direct selling (ie, cooling-off period).

Prohibition on Products
There are no restrictions on products to be sold by direct selling other than the restrictions that also apply for selling from business premises (drugs, alcohol, etc).

Money Collections
The consumer is not obliged to pay any amount before the cooling-off period has expired. Deposits are not forbidden, however, but are refundable in case of cancellation.

Licenses
No licensing for direct salespeople on the basis of Direct Selling legislation. However, when doing retail-selling “in a professional way” (direct selling is retail selling), a license from the Chamber of Commerce could be required in the same way as every retailer. Please note many municipalities require a local license for traders to sell door-to-door.

Status of Direct Sellers
No official status for direct salespeople.

Earnings Claims

Apart from our codes of conduct, there are no specific regulations for direct selling. Of course, civil law with regard to misleading claims, etc, can be applicable.

Taxes and Fees

For self-employed salespeople:

Value Added Tax (VAT)

Registration for VAT is required. For ‘Small Entrepreneurs’ there are some special regulations on  bookkeeping, payment of VAT, etc., (contact the Dutch Tax Authority to apply).
VAT rate is 21 %.

Income Tax
Salespeople have to inform the tax authorities on their income and pay income tax according to the general legislation. There is no withholding for self-employed salespeople. (Please check the Dutch Tax authority for detailed information.)

Social Security

Part of the income tax covers payment for retired people (AOW, Algemene Ouderdoms Wet) and some health insurances (AWBZ, Algemene Wet Bijzondere Ziektekosten).

Most of the other social security payments are only applicable to employed salespersons. Self-employed salespeople have to conclude their own health insurances, etc.

Others

Links for information on business and entrepreneurs in the Netherlands:   http://www.answersforbusiness.nl/self-employed-professionals

Chamber of Commerce: www.kvk.nl/english

Tax authority: www.belastingdienst.nl/english