Small business allowance (KOR) changes
What will change?
The small entrepreneur scheme (KOR) is being modernized. Now the small entrepreneur scheme applies if you have to pay less than €1,883 in VAT in one year. You then receive a tax reduction or pay no VAT. You calculate this yourself and report it in your last VAT return of a year. In the new scheme, it is about your turnover.
This information was posted by Answer for Business
Effective date: Jan. 1, 2020
What will change?
The small entrepreneur scheme (KOR) is being modernized. Now the small entrepreneur scheme applies if you have to pay less than €1,883 in VAT in one year. You then receive a tax reduction or pay no VAT. You calculate this yourself and report it in your last VAT return of a year. In the new scheme, it is about your turnover.
Entrepreneurs with up to €20,000 turnover in the Netherlands can opt for a sales tax exemption as of January 1, 2020. This means that they do not charge VAT to their customers and are therefore no longer allowed to mention VAT on their invoices. In addition, they will also no longer have to submit VAT returns and will be exempt from the associated administrative obligations. On the other hand, they cannot deduct the VAT charged to them by other entrepreneurs. The regulation applies only to the supplies of goods and services performed by them in the Netherlands.
For whom.
- Entrepreneurs with up to €20,000 turnover in the Netherlands. The scheme will also apply, for example, to foundations, associations and bv's.
When?
The change is expected to take effect Jan. 1, 2020
Note: The effective date of this (legislative) amendment is not yet final. Entry into force depends on approval by the Lower and Upper Houses or promulgation of the Order in Council (AMvB) or ministerial regulation as well as publication in the Dutch Bulletin of Acts, Orders and Decrees or the Government Gazette.
See also
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