Small Business Scheme (KOR) changes

What is changing?

The small business scheme (KOR) is being modernized. Currently, thesmall business schemeapplies if you owe less than €1,883 in VAT in a single year. You will then receive a tax reduction or pay no VAT. You calculate this yourself and report it in your final VAT return for the year. Under the new scheme, your turnover will be taken into account.

Entrepreneurs with a maximum turnover of €20,000 in the Netherlands can opt for an exemption from sales tax from January 1, 2020. This means that they do not charge VAT to their customers and are therefore no longer required to include VAT on their invoices. In addition, they will no longer have to file VAT returns and will be exempt from the associated administrative obligations. On the other hand, they will not be able to deduct the VAT charged to them by other entrepreneurs. The scheme only applies to goods and services supplied by them in the Netherlands.

Who is it for?

• Entrepreneurs with a maximum turnover of €20,000 in the Netherlands. The scheme will also apply to foundations, associations, and private limited companies, for example.

When?

The change is expected to take effect on January 1, 2020.

Please note: The effective date of this (legal) amendment has not yet been finalized. Its entry into force is subject to approval by the Senate and House of Representatives or the promulgation of theOrder in Council (AMvB) or ministerial regulation andpublication in the Bulletin of Acts and Decrees or the Government Gazette.

See also

• Small Business Scheme (KOR)
• Sales tax (VAT)
• File a VAT return

Do you have any questions?

ContactAnswer for businesses

088 - 042 44 00

Answer for companies

External links

• Small business scheme changes (Central Government)

Laws and regulations

• Internet consultation. Act on turnover-related tax exemption for entrepreneurs (Overheid.nl)

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