The small business scheme (KOR)

What the KOR is

Normally you add VAT to your invoices, pay that VAT to the Belastingdienst every quarter, and get back the VAT on your business costs.

With the small business scheme (kleineondernemersregeling, KOR) you skip all of that: you don't charge VAT on your invoices in the Netherlands, you don't get back the VAT on your costs, and you don't file a VAT return.

It's only for small businesses: your revenue in the Netherlands must stay at or below €20,000 a year.

Whether it pays off depends on your clients. If they are mostly consumers, it can be cheaper for them. If they are businesses, they could get the VAT back anyway, and you lose the VAT on your own costs. Netto's KOR calculator (under Tools on the website) works it out for you.

You register at the Belastingdienst

Switching the KOR on in Netto does not register you. You apply for it yourself at the Belastingdienst, and it only counts from the date they confirm. Until then, charge VAT as usual.

Switch it on in Netto

Once you are registered, go to Settings → VAT and turn on Registered for the KOR. You can also tick it when you first set up Netto. Netto then:

• leaves VAT off your new invoices and puts the KOR note on them,
• adds the VAT on your costs to the cost itself, because you can't get it back,
• shows KOR · no filing on the VAT page, instead of a return to file.

Selling to a business in another EU country, or buying a service from abroad (software, ads)? Then the VAT is "reverse charged" (the buyer deals with it) as usual, also under the KOR. Netto handles those the same way as without the KOR.

Keep an eye on the limit

Netto adds up your revenue for the year. From 90% of the limit it warns you on the VAT page. If you go over €20,000, the KOR ends: from that moment you have to charge VAT again and file VAT returns, and you must tell the Belastingdienst. When that's arranged, turn Registered for the KOR off.