Accounting Guide for Self-Employed Professionals: Receipts, Withholding and VAT Explained

Lawyers, dietitians, psychologists, architects, engineers, translators — very different professions, but the same accounting and tax framework applies to all of them: self-employed professional status. This guide brings together the core obligations that come with that status, and the mistakes we see most often.

Who Counts as a Self-Employed Professional?

Activity based primarily on personal expertise, knowledge and effort rather than capital, carried out independently rather than under an employer, is classified as self-employment. Lawyers, dietitians, psychologists, architects, engineers, translators, doctors and accountants are typical examples. These professions can be practiced directly as a self-employed professional — with a tax registration certificate — rather than through a sole proprietorship structure.

When Should a Self-Employment Receipt Be Issued?

Self-employment income is recognized on a cash basis — income arises not when you provide the service, but when you actually collect payment, and a self-employment receipt is issued and the income declared at that point. This differs from the accrual logic behind standard invoicing, and it offers a real cash-flow planning advantage: you don’t owe tax on money you haven’t received yet.

How Does Withholding Work?

When a self-employed professional issues a receipt for services provided to a company (or to certain individuals), the payer withholds income tax at a set rate when making the payment, and remits it to the tax office. The self-employed professional then credits this withheld amount against the tax calculated on their annual income tax return. For services provided directly to end consumers, no withholding applies — the full amount, including VAT, is collected.

VAT Obligations

VAT is calculated separately on the service fee shown on a self-employment receipt and declared through periodic VAT returns. Some self-employed activities may qualify for VAT exemptions — for example, certain healthcare services — and this needs to be assessed based on the specific activity.

Deductible Expenses for Self-Employed Professionals

• Office/practice rent, electricity, internet and phone costs
• Professional liability insurance and chamber/association membership dues
• Professional publications, conferences, seminars and certification costs
• The documented portion of work-related vehicle and travel expenses

Common Mistakes

• Recording income as soon as a contract is signed, before payment is actually collected
• Forgetting to credit withheld tax against the annual return, effectively paying tax twice on the same income
• Deducting personal and professional expenses together without separating them

Our Advisory Services for Self-Employed Professionals

We prepare your receipts, track withholding, and file your VAT and annual income tax returns with your profession’s specific deductible expenses in mind. For professionals working with multiple corporate clients in particular, we carefully track that all withheld amounts are correctly credited.