Small businesses scheme (KOR) from 01-01-2020

Modified on Mon, 08 Apr 2024 at 11:00 AM

For companies with a small revenue there is the Small businesses scheme (KOR). Under this scheme, an entrepreneur who is liable for VAT, is established in the Netherlands and has no more than € 20,000 Dutch turnover in a calendar year from 01-01-2020 is eligible for an exemption from turnover tax (VAT).


After registration with the tax authorities the KOR will be applied for a period of at least 3 years by the tax authorities.


Only a user with the 'Back office' role in a domain or the 'External accountant' role can enter a period in which the KOR is active in an administration.


During an active KOR period no VAT returns need to be sent to the tax authorities for that administration from Yuki. 


ATTENTION!

  • On all sales invoices that are created in Yuki and sent to customers via the Sales functionality it should be stated that an exemption is applied.
  • As soon as the revenue is higher than € 20.000 in a calendar year this should be reported to the tax authorities immediately. From that date VAT returns have to be sent from Yuki to the tax authorities because the KOR is no longer applicable.

Threshold amount of revenue

When the revenue in a calendar year is higher than € 20.000 then the VAT scheme for Small Businesses may not be applied. The revenue is calculated as follows:

  • Revenue of all none-exempt goods and services taxed at high rate (21% VAT)
  • Revenue of all none-exempt goods and services taxed at low rate (9% VAT) (also 13% VAT rate for canteens of sports association)
  • Revenue of al none-exempt goods and services taxed at 0% (also revenue from intra-Community supply (ICP))
  • Revenue from services within the Netherlands whereof the levy of VAT is reverse charged to your customer.


The following revenue may not be included in the calculation of the revenue:

  • Revenue of the supply of a capital good that will be used in the company:
    • real estate like business premises
    • movable assets for which income tax has to be paid like a car and computer.
  • The profit margin doesn't count for the revenue when the margin scheme or the travel agency sheme is applied. However, the sales price counts.


For more detailed information about the calculation of the estimate of your revenue see Kan ik gebruik maken van de Kleineondernemersregeling (KOR)? (in Dutch).


Legal forms

  • The VAT scheme is now not only applicable for a sole proprietorship or partnership but also for the legal forms: private company (B.V.), public limited company (N.V.), foundation and association.
  • The VAT scheme is applied per entrepreneur and not per company. So when the entrepreneur has more companies then the VAT scheme is not applicable per company.


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