Term
What is small business scheme (KOR)? Meaning and explanation
The small business scheme (kleineondernemersregeling, KOR) is a VAT exemption for businesses established in the Netherlands with turnover of up to 20,000 euros per calendar year: they charge no VAT, file no VAT return and deduct no VAT.
Definition
The small business scheme (kleineondernemersregeling, KOR) is a VAT exemption for businesses established in the Netherlands with turnover of up to 20,000 euros per calendar year: they charge no VAT, file no VAT return and deduct no VAT.
Also known as: KOR, Kleineondernemersregeling, Kleine ondernemersregeling, Small business scheme, EU-KOR
A business can join the KOR if it is established in the Netherlands, supplies goods or services subject to VAT and has turnover of no more than 20,000 euros per calendar year, both in the year of registration and in the previous year. Registration is done through Mijn Belastingdienst Zakelijk, no later than 4 weeks before the desired start date. Participants show no VAT on their invoices and do not even have to issue invoices for VAT purposes, but they must keep their purchase invoices. If turnover exceeds 20,000 euros in a calendar year, the business must deregister immediately. Since 2025 there is also the EU small business scheme for businesses trading in other EU countries.
For a firm, a KOR client requires different processing. Because VAT on costs and investments is not deductible, that VAT belongs in the cost price and not in the receivable from the Tax Administration. The firm also has to monitor turnover: a client approaching the threshold needs to know in time what exceeding it means. The KOR applies per business to all activities, not to part of the turnover. The government also intends to exempt KOR businesses from the planned e-invoicing obligation; that bill still has to be adopted.
Autoboeker supports VAT-exempt administrations as part of its VAT and compliance checks, for all four connected packages. With administration rules and AI instructions you record that a KOR client books purchases including VAT to the expense account, and with your own context you can explain the client's situation.
Example
A hairdresser with 15,000 euros of turnover participates in the KOR. She buys a hairdryer for 121 euros including VAT. The full 121 euros is booked as an expense, without deducting 21 euros of input VAT.
FAQ
Questions about small business scheme (KOR).
No more than 20,000 euros of turnover per calendar year, in the year of registration and the previous year. If you exceed it during a year, you must deregister immediately.
Yes. There is no VAT return, but the administration and the retention obligation still apply. The Tax Administration explicitly states that purchase invoices must be kept.
Further reading
Related in the knowledge base.
Guides
Automating VAT checks: how to prevent Dutch VAT errors
Automating VAT checks in pre-accounting: 21%, 9% and 0% rates, reverse charge, ICP and VIES checks, and how to catch VAT errors before the return is filed.
10 min readRead the guideRegulationMandatory e-invoicing in 2030: what should your firm know?
The Dutch cabinet plans mandatory e-invoicing from 1 July 2030 and reporting from 2031. What changes, what an e-invoice is, and what your firm can do now.
9 min readRead the guideSee Autoboeker in your own administrations.
In a 30-minute demo, we show you how Autoboeker works with your firm's accounting software and way of working.
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