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If you run a small business in the Netherlands, you may be eligible for the Small Businesses Scheme (kleineondernemersregeling, KOR).
The small businesses scheme
Entrepreneurs with a turnover of less than €20,000 per year can be exempt from paying VAT. If you participate in the small businesses scheme you will not charge your customers VAT and you do not pay turnover tax (VAT) to the Dutch Tax and Customs Administration (Belastingdienst). You will also be exempt from the administrative obligations of the VAT system altogether. You can no longer deduct VAT charged to you. This only applies to goods and services they have provided inside the Netherlands.
To participate in the small businesses scheme, make sure you apply for it (in Dutch) at least 4 weeks before the start of the next quarter. If you were already exempt from paying VAT, your exemption will continue automatically. If you no longer require exemption from paying VAT, you must inform the Tax and Customs Administration (in Dutch). You can check whether you are eligible for the small business scheme (in Dutch).
If you apply for exemption, the exemption will last for at least 3 years, unless your turnover exceeds €20,000. In that case you must notify the Tax and Customs Administration (in Dutch).
When do you qualify?
- Your business has a permanent establishment in the Netherlands and is registered with the Dutch Chamber of Commerce (KvK).
- Your annual turnover is less than €20,000. On the website of the Dutch Tax and Customs Administration you can read more on how to estimate your turnover (in Dutch).
Read more about the Small Businesses Scheme (in Dutch).
How to apply?
If you want to register for the small businesses scheme (in Dutch), you have to fill in the following form (in Dutch) and send it to the Tax and Customs Administration at least 4 weeks before the start of the next quarter.
The Small Businesses Scheme is an exemption from VAT. Administrative exemption from the VAT system means you no longer have to:
- Send invoices. If you do send invoices you are not allowed to add VAT. Should you do so you will lose your exemption.
- File VAT returns.
- Keep your purchase invoices for longer than 7 years, or 9 years in the case of immovable property from time of use.
Old Small Businesses Scheme
You can no longer apply the old Small Businesses Scheme to your tax returns from 1 Janury 2020. Do you want to apply the old scheme to a tax return for a period before 1 January 2020? You have to file a supplementary VAT form (Suppletie omzetbelasting) form via the entrepreneur login (Inloggen voor ondernemers, in Dutch). You can then apply or adjust the old small businesses scheme in the category Vermindering volgens de kleineondernemersregeling.