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VAT schemes

This information is provided by:Tax and Customs Administration, BelastingdienstTax and Customs Administration, BelastingdienstNederlandse versie

If you run a business in the Netherlands, sometimes special rules apply to the calculation of VAT (BTW). For example, in some cases you do not charge VAT on your turnover, but on your profit margin. You can read about these Dutch VAT rules here.

Small entrepreneurs scheme (KOR)

You can make use of the small entrepreneurs scheme (KOR) if your business has a turnover of €20,000 or less. This can be to your advantage: if you apply for the KOR, you don't charge VAT, and you don't file VAT returns. But you are not allowed to deduct VAT charged to you by your suppliers. Read more in the article Small businesses scheme.

Margin scheme

Do you trade in used goods? If so, you may be allowed to apply the margin scheme. The margin scheme applies to most common used goods but also to art, antiques or collectors' items that you have purchased without VAT. Under the margin scheme, you do not calculate VAT on your turnover, but on the difference between the selling price and the purchase price of the goods: the profit margin. Are you selling at a profit? If so, your profit margin will be positive and you will have to pay VAT. If you sell at a loss, you have a negative profit margin. In that case, you do not have to pay VAT, but you will not get a VAT refund. For more information, contact the Tax Administration or read their article on the 'margeregeling' (in Dutch).

Travel agency scheme

Do you have a travel agency? If so, you may be allowed to use the travel agency scheme. You will then pay VAT on your profit margin on a trip instead of on the total price of the trip. But you are not allowed to deduct all VAT.

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