When Should You Unsubscribe from the KOR?

Voluntary Unsubscription

– Before January 1, 2025, there was a 3-year commitment for the KOR. This requirement has now been removed.

– You can unsubscribe at any time. But remember, the unsubscription takes effect only in the next quarter, and you must submit your request at least four weeks before the new quarter begins.

Mandatory Unsubscription

If your turnover exceeds €20,000 in one calendar year, you are required to unsubscribe from the KOR.

– Example: If your turnover reaches €19,750 by 5 february, 2025, and you issue a €500 invoice after, your turnover will exceed the €20,000 threshold. This means you must start charging VAT on that invoice and all future sales.

Turnover That Counts Toward the €20,000 KOR Limit

Revenue that counts toward the €20,000 threshold includes:

– Sales of goods and services taxed with Dutch VAT (21%, 9%, and 0%).

– Transactions where VAT is transferred to another 

Turnover That Does Not Count Toward the €20,000 KOR Limit

Some revenue does not count toward the limit, including:

– VAT on private use of business assets (like a company car or phone).

– VAT-exempt services (e.g., certain medical or educational services).

How to Unsubscribe from the KOR Digitally

To unsubscribe from the KOR, you can now easily do so via the online form on Mijn Belastingdienst Zakelijk. 

– The Tax Authority no longer accepts paper forms. 

– After submitting your unsubscription, you will receive confirmation within 6 weeks, stating the exact date your participation ends.

What Happens if You Miss the KOR Unsubscription Deadline?

If you realize too late that you’ve exceeded the €20,000 threshold:

– You can either:

  – Issue credit notes to your clients and send new invoices with VAT. (This may be inconvenient for private clients as they can’t reclaim VAT.)

  – Pay the VAT from your own pocket. Many entrepreneurs choose this option, though it may be costly, it’s often more professional than issuing retroactive invoices.

What Happens After Unsubscribing from the KOR?

Once unsubscribed, you must charge VAT like any other regular VAT-registered business. However, if you’ve switched between the KOR and regular VAT during the year, you may need to perform a VAT adjustment at year-end.