Changes to the Small Business Scheme (KOR) 2025
Are you making use of the small business scheme? Or are you planning to do so? A number of changes will take place as of January 1st, 2025.
KOR: what was that again?
The small business scheme is a VAT exemption for
- entrepreneurs (from self-employed persons/general partnerships, to foundations and private limited companies)
- in the Netherlands whose
- annual turnover is less than € 20,000.
To be eligible for the VAT exemption, you must meet the above criteria, plus a number of additional conditions (in Dutch). Entrepreneurs who register (in Dutch) for the KOR successfully are exempt from VAT obligations. This reduces the size of their administration and can lead to tax benefits: entrepreneurs using the KOR do not have to charge VAT on outgoing invoices, do not receive VAT on incoming invoices and therefore do not have to file a VAT return. Please note: using the KOR is not necessarily advantageous.
What will change in the KOR in 2025?
As of 1st January 2025, the following conditions of the small business scheme will change
- Previously, the KOR had a mandatory participation period of 3 years. As of 2025, this will no longer be the case. Entrepreneurs may unsubscribe from the scheme whenever they wish.
- In addition to the removal of the mandatory participation period of 3 years, the exclusion period of 3 years following de-registration has also been lifted: you can now register again for the next calendar year.
- The VAT exemption for small entrepreneurs established abroad will be abolished as of 2025.
You can find more information about the KOR on the website of the Tax and Customs Administration. On this page (in Dutch) you can find more detailed information. Please feel free to contact us if you have any questions or require help applying to use the KOR scheme.
