Small businesses scheme (KOR)
Do you run a small business in the Netherlands with a turnover of no more than €20,000 per year? You can choose to take part in the small businesses scheme (kleineondernemersregeling, KOR).
If you take part in the small businesses scheme KOR, you
- do not charge your customers VAT (btw)
- cannot deduct VAT on business costs and investments
If you participate in the small businesses scheme you will not charge your customers VAT and you do not pay VAT (turnover tax) to the Netherlands Tax Administration (Belastingdienst). You will have less administrative duties for the VAT. This scheme applies to all activities in your company, also if you have different sub-numbers for VAT.
Please note: You may need to review VAT deductions if you start or end participation in the small businesses scheme (in Dutch).
Who can apply for the small businesses scheme (KOR)?
The small businesses scheme is a VAT exemption for:
- natural persons or partnerships of these (such as sole proprietors, professional partnerships, or general partnerships (VOFs)
- legal persons (such as foundations, associations, and private limited partnerships (bv’s)
If you want to take part in the KOR you must meet the conditions:
- You are an entrepreneur for VAT.
- Your turnover is at most €20,000 per calendar year. To estimate your turnover you can use the Netherlands Tax Administration Dutch-language online tool.
- Your business is established in the Netherlands
Check if you are eligible for this scheme with the Dutch-language KOR tool. If you make use the KOR scheme, this is for at least 3 years.
The small businesses scheme is not always financially beneficial. For example if you plan to make investments in the near future. You can find more information in Dutch with the Tax Administration (Belastingdienst).
Please note: from 1 January 2025 small businesses must have their main establishment in the Netherlands to participate in the KOR. Small businesses from other EU countries doing business in the Netherlands can participate in the EU VAT scheme for small businesses (EU-KOR).
How to apply for the small businesses scheme
You can apply for the small businesses scheme by completing the Dutch-language digital form Melding omzetbelasting kleineondernemersregeling. You need to login to Mijn Belastingdienst Zakelijk (in Dutch) to access this form. Make sure you apply for it at least 4 weeks before the start of the next return period.
Application threshold
Does your turnover not exceed €1,800 per year? And do you not have to register with the Dutch Chamber of Commerce (and you did not register)? You do not have to apply for this measure. You automatically take part in the KOR scheme.
Cancelling participation in the KOR
If you take part in the KOR scheme, this is for at least 3 years. Then, if you no longer want to participate in the KOR scheme, you must cancel your participation (in Dutch) with the digital cancellation form in Mijn Belastingdienst Zakelijk (in Dutch).
Does your turnover exceed €20,000? In that case you must notify the Tax and Customs Administration (in Dutch) immediately. You will be subject to VAT.
Please note: from 1 January 2025 participants of the KOR can cancel their participation at any time. They will not need to participate for at least 3 years.
Who can apply for the European small business scheme (EU-KOR)?
Small businesses doing business in other EU countries can participate in the European small business scheme (EU-KOR) (in Dutch) if they:
- have an annual turnover in a country below the local threshold
- have a total annual turnover less than € 100,000
- do not participate in other VAT return schemes
You can apply to participate in the EU-KOR from 1 January 2025 with the Netherlands Tax Administration if your business is established in the Netherlands. You apply through Mijn Belastingdienst Zakelijk (in Dutch).