If you run a small business in the Netherlands, you may be eligible for the Small Business Scheme (kleineondernemersregeling, KOR ).
Small Business Scheme
Entrepreneurs with a turnover of less than EUR 20,000 per year may be exempt from paying VAT. If you participate in the small business scheme, you will not pay VAT to your customers and you will not pay VAT to the Dutch Tax Administration (Belastingdienst). You will also be exempt from the administrative obligations of the VAT system. You can no longer deduct VAT charged. This only applies to goods and services you have supplied in the Netherlands.
To participate in the small business scheme, make sure that apply for it (in Dutch) at least 4 weeks before the start of the next quarter. If you have already been exempted from paying VAT, your exemption will continue automatically. If you no longer apply for VAT exemption, you must inform the Dutch Tax Administration. You can check whether you are eligible for the small business scheme (in Dutch).
If you apply for exemption, the exemption will last for at least 3 years, unless your turnover exceeds EUR 20,000. In this case, you must notify the Dutch Tax Administration.
When do you qualify?
- Your company has a permanent establishment in the Netherlands and is registered with the Dutch Chamber of Commerce (KvK).
- Annual turnover is less than €20,000. On the website of the Dutch tax and customs administration you can find out more about how to estimate your turnover (in Dutch).
Read more about small business scheme (in Dutch).
How to apply?
If you want to register for KOR, you must fill in the following form (in Dutch) and send it to the Tax and Customs Administration at least 4 weeks before the start of the next quarter.
Administrative exemption
The small business scheme is a VAT exemption. Administrative exemption from the VAT system means that you no longer have to:
- Send invoices with VAT. If you send invoices, you are not allowed to add VAT. If you do, you will lose your exemption.
- File VAT returns.
- Keep purchase invoices for more than 7 years, or 9 years in the case of real estate from the time of use.
The old small business system
You can no longer apply the old small business system to your tax returns from 1 January 2020. Do you want to apply the old system to a tax return for a period before 1 January 2020? You need to submit a supplementary VAT form ( Supplementary omzetbelasting ) via login entrepreneur ( Inloggen voor ondernemers, in Dutch). You can then apply or adjust the old small business scheme in the Vermindering volgens de
