The Kleine Ondernemersregeling (KOR) (in English: small business scheme) gives an exemption from VAT. You can use the KOR if you are located in the Netherlands and don't have more than € 20,000 turnover in 1 calendar year. The KOR is for natural persons (sole proprietorships), combinations of natural persons (for example a general partnership) and for legal persons (for example foundations, associations and private limited companies).
What is the KOR?
The KOR gives a VAT exemption. If you meet the conditions and opt for the KOR, you no longer have to charge VAT to your customers. You also no longer have to submit a VAT return and you can't reclaim VAT on your costs and investments.
Why you should apply for the KOR
As you might know already, without the KOR you have to do your VAT administration every quarter. When you did successfully apply for the KOR, you don't have to do this anymore! This means no surprises anymore in the end of every quarter, when you figure out that you have to pay back a lot VAT to the tax authorities.
Register for the KOR
Would you like to register for the KOR? That is only possible with this registration form. The registration form must be received by the tax authorities no later than four weeks before the start date of the tax return period in which you want the KOR to start. You will receive a letter stating the definitive commencement date of the KOR.
You will continue to file a VAT return until the effective date in this registration letter. If your registration is received too late, the starting date may deviate from the date you requested.