Making a loss? How to carry it back or forward

A business loss is painful, but the Dutch tax system offers a silver lining: you can offset that loss against profits in other years and recover tax you've already paid. This mechanism, called verliesverrekening (loss offset), can turn a bad year into a tax refund. This guide explains how it works, when you can claim it, and what you need to do.

What is a business loss?#

A business loss occurs when your business expenses exceed your revenue. For tax purposes:

Loss = Total deductible business costs − Revenue

Example: You're a freelance designer. In 2025, you invoiced €35,000 but your business costs (software, equipment, contractor fees) totaled €42,000. Your loss is €7,000.

In a normal job, the year is just a loss and you move on. But as a freelancer, you have the option to offset that loss against profits in other years — either the years before (carry-back) or the years after (carry-forward) — and recover tax.

How does loss offset work?#

When you make a loss, you don't just report zero profit. Instead, you report a negative profit on your income tax return. The Belastingdienst then allows you to offset that loss as follows:

Carry-back: You can offset the loss against the profit of the three prior years. If you made a loss in 2025, you can offset it against your 2024, 2023, and 2022 profits. The Belastingdienst will recalculate your tax for those years and issue a refund.

Carry-forward: Any loss not offset in prior years carries forward indefinitely. If you still have an unmatched loss after using the three prior years, you can offset it against profits in 2026, 2027, and beyond.

A worked example#

Let's say you're a freelancer with this profit history:

• 2022: €25,000 profit (paid tax)
• 2023: €30,000 profit (paid tax)
• 2024: €28,000 profit (paid tax)
• 2025: €7,000 loss (this is the loss year)

You can offset the €7,000 loss as follows:

1. Offset €7,000 against 2024's €28,000 profit → 2024 becomes €21,000 taxable
2. You request a tax recalculation for 2024 and receive a refund

The loss wipes out €7,000 of your 2024 profit. You get back the income tax you'd have paid on that €7,000, minus any other deductions or credits that applied.

If the loss was larger, say €40,000, you'd offset it like this:

1. €28,000 against 2024 → 2024 becomes €0 taxable (full offset)
2. €12,000 against 2023 → 2023 becomes €18,000 taxable (partial offset)
3. €0 against 2022 (the €12,000 loss in step 2 consumed the whole €12,000)
4. Remaining €0 — the €40,000 loss is fully offset

If you had a €50,000 loss:

1. €28,000 against 2024 → 2024 becomes €0
2. €22,000 against 2023 → 2023 becomes €8,000
3. €0 against 2022 (no loss left to offset)
4. Remaining €10,000 loss carries forward to 2026+

In 2026, if you made €15,000 profit, the carried-forward €10,000 loss reduces it to €5,000 taxable.

When can you claim verliesverrekening?#

You are eligible to offset a loss if:

• You made a true business loss (expenses exceeded revenue)
• Your business was registered with the KVK
• You kept proper records (invoices, receipts, expense documentation) for 7 years
• You claim it in your tax return (the Belastingdienst doesn't automatically apply it)

You cannot offset a loss if:

• You deliberately inflated expenses to create a fake loss (fraud)
• You claimed the same expenses twice (double-claiming)
• You have an ongoing dispute with the tax office about your profit for that year

How to claim it on your tax return#

When you file your income tax return for the loss year:

1. Calculate your actual profit/loss — revenue minus all deductible business costs, as usual.
2. If it's a loss, enter it as a negative number on your return (or in the "loss" field if your software offers it).
3. In the section for loss offset, specify which prior years you want to offset against (usually 2024, 2023, 2022 in priority order).
4. The Belastingdienst will recalculate and issue updated assessments for those prior years, showing refunds.

If you use tax software or an accountant, they'll handle this automatically. The key is that you must actively claim it — the system doesn't apply it by default.

Frequently asked questions#

A business loss in one year doesn't mean you lose money overall — it means you have a powerful tax tool. Offset it against profitable years and recover tax you've paid. Keep your records clean, file your loss year return with the offset claim, and the refund will follow. The Belastingdienst is used to this; it's a normal part of business life. Use ZZP Belasting to track your year-to-year profit, and you'll always know whether you're heading toward a loss so you can plan ahead.

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