The small business scheme (KOR): when does it make sense?
With the KOR you don't charge VAT and don't file VAT returns. That saves work and can lower your prices for consumers. But you can't reclaim VAT either.
Last reviewed: Tax year 20265 min read
Who can join?
- Your business is established in the Netherlands.
- Your revenue is at most €20,000 in the year you join and in the year before.
- What you supply is normally subject to VAT.
Revenue for the KOR is what your clients pay, excluding VAT. You register in Mijn Belastingdienst Zakelijk, at least four weeks before you want to start.
Pros and cons
| With KOR | Without KOR | |
|---|---|---|
| VAT on your invoices | No | Yes |
| VAT return | No | Usually quarterly |
| Reclaim VAT on costs | No | Yes |
| Works well if your clients are | Consumers | Businesses |
If you mostly work for businesses, the KOR gains you little: they deduct the VAT on your invoice anyway. If you make big purchases, such as a new laptop or camera, the KOR means missing out on the VAT refund.
Going over €20,000
As soon as your revenue in a year exceeds €20,000, you can no longer use the KOR. You leave immediately. The invoice that takes you over the threshold already carries VAT on the full amount.
- Revenue up to 15 September
- €19,750
- New job on 16 September
- €500
- Revenue after that
- €20,250
From 16 September the normal VAT rules apply. So you charge 21% VAT on the €500.
After leaving, you can't rejoin for the rest of that year and the whole following year. You can also leave voluntarily, from the start of a new filing period and with at least four weeks' notice.
The KOR in Mizara
In Mizara you indicate whether you use the KOR. You then see how close you are to the €20,000 threshold. Without the KOR, you charge VAT per invoice and see what you pay each quarter.