Making use of the old KOR

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Tax and Customs Administration, Belastingdienst

Making use of the old KOR

Do you still have to file a VAT return for a year prior to 2020, and is the amount of VAT you would have to pay higher than €1,345, but less than €1,883? Then you can still request a reduction under the old small businesses scheme (KOR), that was in place until 1 January 2020.

Is the amount in VAT due less than €1,345? In that case, you don’t have to pay VAT over 2019 at all.

You must meet the following conditions to make use of the old small businesses scheme:

  • You are a sole proprietor (eenmanszaak). Or your business is a collaboration of natural persons, such as a general or professional partnership.
  • You are due to pay less than €1,883 in VAT. You have already deducted pretax from this amount.
  • Your business is located in the Netherlands.
  • You meet the administrative VAT requirements (in Dutch).
You can calculate the amount you can subtract from the VAT you would have to pay the Dutch Tax Administration like this:
2.5x(1,883 - (VAT due - VAT you have already paid, f.i. to your suppliers)).
Example: you have charged your customers €4,500 in 2018. You have paid your suppliers €2,865. You would have to pay the Dutch Tax Administration €4,500-€2,65=€1,635 in VAT.
Your VAT reduction is:
2.5x(1,883 - 1,635) = €620.
To see more examples of how to calculate the reduction, see the brochure (pdf, in Dutch) released by the Tax Administration. If you have any questions concerning your VAT return and your elgibility for VAT reduction, contact the Tax Information Line.

Questions relating to this article?

Please contact the Tax and Customs Administration, Belastingdienst

This information is provided by

Tax and Customs Administration, Belastingdienst