The Kleineondernemersregeling (KOR) is a VAT exemption scheme in the Netherlands for businesses with an annual turnover below €20,000 from sales to Dutch consumers or businesses registered in the Netherlands. Revenue from sales to EU or non-EU customers does not count toward this limit.
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 especially beneficial for businesses serving Dutch private individuals or VAT-exempt businesses, as they cannot reclaim VAT. However, if you work with VAT-registered companies, not charging VAT could make your services less competitive.
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 from sales to Dutch consumers or businesses registered in the Netherlands.
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.