What is the KOR and Who Can Apply?

The KOR is a VAT exemption scheme that allows small businesses to avoid charging VAT on their sales. Instead of charging VAT to your customers and submitting regular VAT returns, businesses that qualify can be exempt from these processes.

You’re eligible for the KOR if:

• Your annual turnover is below €20,000.
• You have a Dutch business.
• You’re a sole proprietor or a small business under Dutch law.

If your turnover exceeds €20,000, you can no longer use the KOR and will need to charge VAT on your sales.

Steps to Apply for the KOR

Applying for the KOR is an easy process, and it’s all done online through the Tax Authority’s portal. Here’s how to apply:

Step 1: Log in to Mijn Belastingdienst Zakelijk

• Go to the Mijn Belastingdienst Zakelijk portal.
• You will need your DigiD for secure access to the portal.

Step 2: Complete the Application Form

Once logged in, you can find the KOR application form in the portal. The form asks for:

• Your business information, including turnover details.
• Confirmation that your business turnover is under €20,000.
• Acknowledgment that you understand the KOR rules.

It’s a simple form that takes just a few minutes to fill out.

Step 3: Submit the Application

Once you’ve filled out the form, submit it through the portal. The Tax Authority will process your application, and you should receive a response within 4 to 6 weeks.

Step 4: Confirmation and Registration

If your application is approved, you will receive confirmation from the Tax Authority. You’ll then be officially registered under the KOR and will no longer need to charge VAT on your sales.

Step 5: Keep Track of Your Turnover

After being accepted into the KOR, you must monitor your turnover. If at any point your turnover exceeds €20,000 in a calendar year, you’ll need to unsubscribe from the KOR and begin charging VAT again.

What Happens After Applying for the KOR?

• No VAT on sales: You will no longer charge VAT to your customers.
• No VAT returns: You won’t need to file regular VAT returns, saving you time and reducing administrative work.
• No VAT deductions: You cannot claim back VAT on your business purchases.
• Monitor your turnover: If you exceed the €20,000 threshold, you must notify the Tax Authority and start charging VAT.

Is the KOR Right for Your Business?

The KOR is a fantastic option for small businesses with lower turnover, as it simplifies tax reporting and reduces the need for VAT paperwork. However, businesses that make significant purchases with VAT may find it disadvantageous since they won’t be able to deduct VAT on those purchases.

If you’re unsure whether the KOR is suitable for your business, consulting an accountant or tax advisor can help you make the best choice.