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Are you the owner of an SME? And did you suffer a substantial turnover loss due to the corona crisis? You may be eligible for the Reimbursement of Fixed Costs for SMEs (Tegemoetkoming Vaste Lasten mkb, TVL). This tax free reimbursement applies to the period from 1 June 2020 through 30 June 2021.
What is the Reimbursement of Fixed Costs?
This reimbursement is meant for SMEs that have suffered a turnover loss of more than 30% during the 4 months June through September 2020 or starting 1 October 2020 during a period of 3 months, to help them pay their fixed costs.
This measure – the TVL – has been extended through June 2021. You can apply for the TVL for 3 month periods at a time.
For the months June, July, August and September 2020 the minimum amount of the reimbursement is €1,000 and the maximum amount is €50,000. You can apply for this period through 30 October 2020.
From 1 October 2020 you can apply for the TVL for the months October through December 2020. The maximum amount will then be €90,000.
The proportion of fixed costs must be at least €4,000 for the months June through September and for each 3 month period from October 2020. At most 50% of the fixed costs will be reimbursed.
From January 2021 the TVL will be phased out in steps. The minimum limit for revenue loss will be increased step by step. For the months January through March the minimim percentage for revenue loss is set at 40% and for the period April through June it is 45%.
The reimbursement is based on the total turnover loss and a percentage for fixed costs that is set per sector. This percentage for fixed costs per sector has been established using data from the Central Bureau of Statistics (CBS). The sector corresponds to the first two digits of the SBI code (in Dutch).
How much reimbursement can you apply for?
The calculation is as follows: Normal turnover x turnover loss in % x proportion of fixed costs in % x 50% = amount of the subsidy.
For example: Company A realised a turnover of €600,000 for the period June through September 2019. The company expects a turnover loss of €300,000 (50%) for the same period in 2020. The proportion of fixed costs for the sector has been set at 40%, so the fixed costs amount to: €600,000 x 40% = €240,000. The company’s fixed costs are more than €4,000 for the period so company A is eligible for this subsidy.
The calculation of the amount of the subsidy then is:
- Normal turnover x turnover loss in % x proportion of fixed costs in % x 50% =
- €600,000 x 50% x 40% x 50% = €60,000
Since the maximum amount is €50,000, company A will receive the maximum amount of €50,000 of which it will receive €40,000 (80%) as an advance payment.
Company B realised a turnover of €200,000 during this period in 2019 and expects a turnover loss of 50%. Fixed costs for the sector this company is active in, are set at 10%. Based on normal turnover its fixed costs amount to €20,000 x 10% = €2,000. The company’s fixed costs fall below the threshold of €4,000 and thus Company B is not eligible for the TVL.
Normal turnover for each period is calculated based on turnover in the corresponding months in 2019.
Who can apply?
SMEs, including the self-employed, that have suffered turnover losses due to the corona crisis and because of this cannot pay their fixed costs, can apply for this measure. Entrepreneurs who were eligible for the Reimbursement for entrepreneurs in affected sectors (TOGS) are eligible for this measure. Check if your main or secondary activity is registered with the Dutch Chamber of Commerce (KVK) under a required SBI code (in Dutch). You can use the Dutch-language advice tool to assess your eligiblity. Hospitality, recreational enterprises, gyms, events, (fun)fairs, hot air ballon flights, sauna’s, wellness centres, venues and theatres are included.
Conditions for the Reimbursement of Fixed Costs
To be eligible for this reimbursement you must comply with the conditions:
- You are an SME (this includes the self-employed). You can verify this with the SME-check.
- You have suffered a turnover loss of at least 30% due to the corona crisis. This limit will be increased in steps from 1 January 2021.
- For the months June through September you have fixed costs of at least €4,000. For each 3 month period from October 2020 through June 2021 you have fixed costs of at least €4,000. Fixed costs are for instance rent, insurances, leases, maintenance and subscriptions. Please note: wage costs and other variable costs are not included. Wage costs are compensated through the NOW: Temporary Emergency Bridging Measure for Sustained Employment.
- Your company has been established and registered with the Dutch Chamber of Commerce (KVK) before 15 March 2020.
- Your main or secondary activity is registered with the Dutch Chamber of Commerce (KVK) under a required SBI code (in Dutch).
- Your company has a branch in the Netherlands.
- Companies not in the hospitality sector or itinerant trade (such as market and street trade, taxi transport, driving schools and (fun)fairs) have at least 1 branch that is not the home address of the owner(s) or is at least seperate from the private residence and has its own entrance.
- If an SME suffers a turnover loss of 30% or more on a registered secondary activity, only the turnover loss for the secondary activity will be included in the calculation. The turnover loss limit will be increased in steps from 1 January 2021.
- If a company is a producer with its own store, it is only eligible for subsidy based on the turnover loss of the store.
- Including this TVL measure your company has received no more than €800,000 (gross) in government support. Exceptions are the fisheries and aquaculture sector (maximum of €120,000) and companies in the primary production of agricultural products (maximum of €100,000).
- You have not petitioned for bankruptcy of filed for suspension of payment.
- You are a not a public company.
- You must request the subsidy to be determined via RVO before 1 April 2021.
How to apply?
You can apply for this reimbursement to the Netherlands Enterprise Agency (RVO, in Dutch) from 30 June 12:00 until 30 October 17:00 hours.
You can apply for the 2nd period (October through December 2020) of TVL from 1 October 2020 through 29 January 2021.
You can apply for the 3nd period of TVL (January through March 2021) from 1 January 2021.
You can apply for the 4th period of TVL (April through June 2021) from 1 April 2021.