The Dutch small business scheme (KOR) explained

Running a small business or earning on the side? You may be able to join the small business scheme, the KOR (kleineondernemersregeling). You then don't charge VAT and don't file VAT returns. That saves work, but it isn't the best choice for everyone.

Who can join?

Your revenue is no more than €20,000 per calendar year. That limit applies to the year you register and to the year before it. You register through Mijn Belastingdienst Zakelijk.

What changes when you join?

• You don't charge your clients VAT. Your invoice shows no VAT, but states that an exemption applies.
• You no longer file VAT returns.
• You can no longer reclaim the VAT on your own costs.

Who is the KOR good for?

Mostly people whose clients are consumers. They can't reclaim VAT, so without it you're cheaper for them, or you keep more. It also saves you four returns a year.

If you mostly work for businesses, VAT makes little difference to your clients: they reclaim it anyway. And if you make big purchases, like a laptop or a camera, the KOR means missing out on VAT you'd otherwise get back. So do the sums first.

Going over the limit?

If your revenue passes €20,000 during the year, you no longer fall under the KOR and you charge VAT again. Check belastingdienst.nl for exactly what changes for you.

Leaving the KOR

To stop, deregister at least 4 weeks in advance. After that you can't rejoin for the rest of that calendar year and the year after.

And mandatory e-invoicing?

The Dutch government plans to make business-to-business e-invoicing mandatory from 1 July 2030. Under the plan, businesses using the KOR are exempt.

How Muntelo makes this easier

Turn on the KOR in Muntelo and your invoices get the right wording automatically, without VAT. You won't see VAT returns any more, but you will see how close you are to €20,000, so passing the limit never takes you by surprise.