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Kleineondernemersregeling (KOR)
Simplify Your VAT Obligations

Accountant
Open Book

What is the KOR Scheme?

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The Kleineondernemersregeling (KOR) is a special VAT exemption scheme for small businesses and self-employed professionals (ZZP’ers) in the Netherlands. If your annual turnover is €20,000 or less, the KOR can help you simplify your VAT obligations.

Why Choose the KOR?

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  • No VAT Charges: You don’t have to charge VAT on your sales, making your pricing straightforward.

  • No VAT Returns: Forget about the hassle of filing regular VAT returns – the KOR takes care of that.

  • Simplified Invoicing: Just include a note on your invoices stating that you're exempt from VAT under the KOR.

How Does It Work?

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  • Eligibility: If your annual turnover is €20,000 or less, you can apply to join the KOR scheme.

  • Commitment: Once you’re in, you typically stay in the scheme for at least three years, as long as your turnover stays below the threshold.

  • No VAT Deduction: Keep in mind that while you won’t charge VAT, you also can’t deduct VAT on your business purchases.

Is the KOR Right for You?

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  The KOR is perfect for small businesses with low turnover and minimal VAT expenses. However, if you regularly incur significant VAT costs, you might want to consider whether this scheme is the best fit.

Get Started

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Interested in simplifying your VAT process? Contact us to learn more about the KOR and how it can benefit your business.

KOR May Not Be a Good Idea For:

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  1. Businesses with High VAT-Eligible Expenses:

    • If your business regularly incurs significant expenses with VAT (such as buying equipment, raw materials, or goods for resale), the inability to deduct VAT under the KOR scheme could lead to higher costs.

    • Examples: Retailers buying stock, construction companies, or manufacturing businesses.

  2. Growing Businesses with Plans to Exceed €20,000 Turnover:

    • If your business is expanding and your turnover may soon exceed €20,000, opting into the KOR might create complications when you need to switch back to regular VAT obligations.

    • Examples: Startups or fast-growing businesses in any industry.

  3. B2B (Business-to-Business) Companies:

    • If your customers are other businesses, they generally prefer VAT invoices, as they can deduct the VAT themselves. Being under KOR may make your services less attractive to B2B clients.

    • Examples: B2B service providers like consultants, IT companies, or marketing agencies.

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