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.
How the turnover limit works in practice
The €20,000 limit applies per calendar year and refers to turnover excluding VAT. Don't just look back at last year's income, look ahead: if you expect to pass the limit this year, registering usually isn't worth it.
What changes on your invoices
You no longer show a VAT amount or VAT rate. Add a short, clear statement that you apply the small business scheme. The normal invoice requirements still apply: name, address, KvK number, invoice number, date, description, amount and payment term.
The KOR and your income tax are two separate things
The KOR only concerns VAT. Your profit, self-employed deduction and other income tax rules continue as usual. Low turnover doesn't automatically mean you pay no tax at all.
Frequently asked questions
Do I have to re-apply for the KOR every year?
No. Once registered, the scheme continues as long as you meet the conditions. You do need to monitor yourself that your turnover stays under the limit.
What happens if I exceed €20,000?
From that moment you leave the KOR. You charge VAT on invoices again and file returns. Ask your accountant how to handle the transition.
Can I combine the KOR with business purchases that include VAT?
Yes, but you cannot reclaim the VAT on those purchases. With large investments the regular VAT regime can therefore be cheaper.
Where do I register or cancel?
Through Mijn Belastingdienst Zakelijk, or via your accountant. Check the current conditions and deadlines on the Tax Authority's website, as they can change.