Changes to small business scheme and introduction of EU KOR

From 1 January 2025, the rules of the small business scheme (KOR) will change. There will also be a new VAT exemption for entrepreneurs doing business in the EU from then on: the EU small business scheme (EU KOR).

For the KOR, these are the main changes:

• The mandatory 3-year participation period will be dropped.
• Re-registering for the KOR can be faster.
• Do you want to participate in the KOR? In that case, the annual turnover must not exceed € 20,000. This applies to the calendar year in which you register and to the calendar year before that.
• You can register or deregister in My Tax Business.
• Participation in the KOR ends for foreign entrepreneurs.

New: EU-KOR
Until 1 January 2025, entrepreneurs established in the Netherlands can apply the KOR only in the Netherlands. With the EU KOR, you can also get a VAT exemption for 1 or more EU countries from 1 January 2025.

If you participate in the EU KOR in, for example, France, Belgium and Italy, the VAT exemption applies to these 3 countries. But you can also choose, for example, to participate only in Belgium. In that case, a VAT exemption only follows in Belgium.

When participating in the EU KOR, no VAT is charged to customers in other EU countries. You do not file a VAT return in other EU countries, but must submit a quarterly turnover statement to the Dutch tax authorities each quarter.

Participation in the EU KOR is subject to a number of conditions, including:

• the company's headquarters must be located in the Netherlands
• the maximum annual turnover is €100,000 (in all EU countries, including the Netherlands)
• participants must comply with the national turnover limit of the EU country where the VAT exemption is applied

Tip: Do you do business as an entrepreneur in other EU countries? Here find more information on the new EU KOR.