Tax
The small business scheme (KOR) explained
What the KOR is, who it suits and when you are better off not choosing it.
· 4 min read · By the Boekhoudvriend team
Under the small business scheme (KOR) you do not charge VAT (btw) and do not file VAT returns, as long as your turnover in the Netherlands stays below €20,000 per calendar year. In return, you can no longer reclaim the VAT on your costs.
Who is the KOR interesting for?
- Entrepreneurs with mainly private customers, who cannot deduct the VAT
- Entrepreneurs with few costs and investments
- Starters and entrepreneurs with a small side business
When not?
If most of your customers are businesses, VAT makes no difference to them and the KOR only costs you your refund on expenses. And if you invest heavily in a given year, reclaiming VAT can be worth more than the KOR.
Registering and deregistering
You register with the Dutch Tax Administration (Belastingdienst) at least four weeks before you want to start. If you exceed the turnover threshold during the year, the exemption ends immediately and you charge VAT again from that moment. After it ends, you cannot rejoin for the rest of that year and the following calendar year.
Help with the choice
Whether the KOR is beneficial for you depends on your customers, your costs and your expected turnover. We run the numbers for you and handle the registration or deregistration.
Common questions about VAT
Terms in this article