The Kleineondernemersregeling (KOR) is a VAT exemption scheme in the Netherlands for businesses with an annual turnover below €20,000. If eligible and registered for the KOR, you don’t need to charge VAT on your sales or file VAT returns, simplifying your administration. However, you cannot reclaim VAT on your business expenses while under this scheme. The KOR is a great option for small businesses and freelancers serving non-VAT-registered clients, as it reduces both workload and compliance requirements.
How does the KOR benefit small businesses?
- Simplified VAT obligations: No VAT invoicing or filing VAT returns.
- Lower administrative burden: Less time spent on tax compliance.
- Cost-effectiveness: Useful if your clients cannot reclaim VAT, like private individuals.
Who can apply?
You must be registered in the Netherlands and have a turnover below €20,000.
How to apply?
Submit your application to the Dutch Tax Authority (Belastingdienst) at least four weeks before the desired start date. Xolo can help guide you through the process to ensure a seamless setup.