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Small businesses scheme (KOR)

This information is provided by

Netherlands Enterprise Agency, RVO | Tax and Customs Administration, Belastingdienst

Do you run a small business in the Netherlands with a turnover of at most €20,000 per year? You can choose to take part in the Small Businesses Scheme (kleineondernemersregeling, KOR).

If you take part in the small businesses scheme KOR, you

  • do not charge your customers VAT (btw)
  • do not file VAT declarations (in some cases you need to file a one-off VAT return (in Dutch)
  • cannot deduct VAT on business costs and investments

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 have less administrative duties for the VAT. This scheme applies to all activities in your company, also if you have different sub-numbers for VAT.

Who can apply for the small businesses scheme?

The small businesses scheme KOR is a VAT exemption for:

  • natural persons or partnerships of these (such as sole proprietors, professional partnership, or general partnership (VOF)
  • legal persons (such as foundations, associations, and private limited partnerships (bv’s)

If you want to take part in the KOR you must meet the conditions:

  • You are an entrepreneur for VAT.
  • Your turnover is at most €20,000 per calendar year. To estimate your turnover you can use the Dutch-language tool on the website of the Dutch Tax and Customs Administration.
  • Your business is established in the Netherlands

Check if you are eligible for this scheme with the Dutch-language KOR tool. If you take part in the KOR scheme, this is for at least 3 years. Does your turnover exceed €20,000? In that case you must notify the Tax and Customs Administration (in Dutch) immediately. You will be subject to VAT.

The small businesses scheme is not always financially beneficial. For example if you plan to make investments in the near future. You can find more information in Dutch with the Dutch Tax and Customs Administration (Belastingdienst).

How to apply for the small businesses scheme

You can apply for the small businesses scheme by completing the Dutch-language form Melding omzetbelasting kleineondernemersregeling. Make sure you apply for it at least 4 weeks before the start of the next return period.

Application treshold

Does your turnover not exceed €1,800 per year, and you cannot register with the Dutch Chamber of Commerce? You are exempted from applying for this measure. You automatically take part in the KOR scheme.

Were you exempt from administrative obligations for the VAT on 31 December 2019? Then the Dutch Tax and Customs Administration has automatically signed you up for the small businesses scheme. If you do not want this, you must cancel your participation (in Dutch) with the cancellation form (in Dutch).

Old Small Businesses Scheme

You can no longer apply for the old Small Businesses Scheme. 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, in Dutch) 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.

This article is related to:

This information is provided by

Netherlands Enterprise Agency, RVO
Tax and Customs Administration, Belastingdienst
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