The Kleine Ondernemersregeling (KOR) is a VAT exemption for small businesses in the Netherlands. You do not charge VAT on invoices or file quarterly returns — but you cannot deduct input VAT either.
What is the KOR?
The Kleine Ondernemersregeling (KOR) is a VAT (BTW) exemption for entrepreneurs with less than €20,000 annual turnover.
Advantages
No VAT administration, no quarterly VAT return and simpler invoices without a VAT line.
Disadvantages
You cannot deduct VAT on business purchases (no input VAT) and after registering you are committed for at least 3 years.
How to apply
Register via Mijn Belastingdienst Zakelijk. If you exceed €20,000 turnover you charge VAT again and file returns from that point on.
When is it worth it?
Low turnover and few business costs often make KOR attractive; with high costs, regular VAT deduction is often better.