How much 20% withholding does my invoice carry?

What goes on the invoice, and what you keep.

At a glance

The answer, and what is worth knowing.

For a €1,000 fee, the invoice is €1,240.00 with 24% VAT.
Your client withholds €200.00 in tax, and pays you €1,040.00.
The withholding applies when the fee is over €300.00 and the client is a business.

VAT goes on top of the fee: 24%, or 17% on an island with reduced VAT.

If the client is a business and the fee is over €300.00, the client withholds 20% of the fee.

You are paid the invoice total minus the withholding.

We checked the rules on 19 October 2026. The result is an estimate. It does not replace your payroll or your accountant.

When is 20% withheld?

When a freelancer invoices a business for services, and the fee is over €300.00. The client withholds 20% of the net fee.

Do I lose the money withheld?

No. The withholding is an advance on your tax. On your return it comes off your tax, and if it is more, you get the rest back.

Is the 20% worked out on the VAT?

No. The withholding is on the net fee, without the VAT. You pay the VAT to the tax office yourself.