The entrepreneur health care insurance, collected by the Dutch tax office. Does that imply I no longer need to take out one myself?
Entrepreneurs health care insurance
In the Netherlands all residents need to have a health care insurance. Often this is a Dutch health care insurance. However, if you are for some reason socially insured in another EU country. You show the so called A1 statement to the Dutch SVB. The SVB is this institute that is in charge of the collection of the social premiums. Then you do not need to have a Dutch health care insurance.
If you lack to take out a health care insurance, then the CAK will send you a letter. The CAK is the administrative office of the SVB. This letter demands you to take out a health care insurance within three months of the date of that letter.
Health care insurance fine
The moment you do not obey the demand of the CAK, the justice department via their administrative office the CJIB will send you a EUR 437,25 penalty. And another one the next month.
The third month you will not get a penalty, but the CAK then assigned a health care insurance to you.
How is the health care premium paid?
The health care premium is in fact charged to you two times per month. One you are in charge of, the other one you are not aware of.
The one you are in charge of is the one you took out yourself. For instance if you are a single man or an older couple we can only assume you do not need the services related to pregnancy. So you chose an insurance without these facilities. In other words, this health care insurance you can customize.
The unaware premium is paid by your employer or your pension organization. Your employer pays directly to the Dutch tax office the monthly amount related to your salary. In the old days this was shown on the salary specification. The amounts are now so high, to keep the peasants unaware, it is no longer shown.
Entrepreneurs health care insurance
The entrepreneur has no employer. Still the entrepreneur also needs to pay for the health care insurance two times.
The one time is identical to the situation of an employee, the entrepreneur takes out a health care insurance him or herself.
The second payment is made via the income tax return. The entrepreneurs income tax return always show two amounts to be paid. One amount is the income tax, the other amount is the obligatory health care insurance.
The most common response we receive from entrepreneurs is surprise. Instantly the idea grows that if the tax office charges them already with health care insurance, they can cancel their own paid health care insurance. Then we need to explain that this is not possible. Confusion all over the place.
Tax is exciting
We think tax is exciting. Paying for the health care insurance is an obligation. We understand that entrepreneurs are confused that their tax bill also includes health care premium to be paid to the Dutch tax office.
