KOR in English: the Dutch small business VAT scheme

The KOR (kleineondernemersregeling) is the Dutch small business scheme for VAT. If your Dutch turnover stays under €20,000 a calendar year, you can choose to charge no VAT on your Dutch sales and stop filing VAT returns; in exchange you reclaim no VAT on your costs.

Worked example

A photographer sells €15,000 of work a year to private clients and spends €2,000 plus €420 VAT on equipment.

• Without the KOR she charges 21% VAT on top, or out of her prices, and reclaims the €420.
• With the KOR she charges no VAT, files no quarterly return, and the €420 becomes part of her costs.

For consumers who can’t reclaim VAT, the KOR usually pays. For business clients, who reclaim VAT anyway, it usually costs you the VAT on your purchases. The KOR calculator works out which applies to you.

What the KOR doesn’t change

• Reverse charge still applies: an EU business client is still invoiced with reverse charge and listed on the ICP.
• Foreign purchases without VAT: you still declare the VAT, and under the KOR you can’t reclaim it.
• The invoice says VAT exempt — KOR Small Business Scheme (Art. 25 Wet OB) and carries no VAT number.

How to join and leave, with the dates, is in the KOR guide.