BTW en Administratie

KOR Small Business VAT Scheme 2026

Updated: 11 August 2026 Netherlands 2026 English

The small business scheme (KOR) sounds simple: below €20,000 turnover you stop charging VAT and filing returns. The KOR cuts both ways — for some entrepreneurs it forfeits thousands in input-VAT refunds. This article shows when the KOR is smart, when it costs money, and what happens when you cross the threshold.

Short answer

The KOR is the Dutch small-business VAT scheme: with Dutch turnover up to €20,000 a year you can stop charging VAT altogether. Your invoices go out VAT-free, VAT returns disappear, and in exchange you forfeit the right to reclaim VAT on your own purchases. Joining is a choice you register with the tax authority, and since 2025 the same mechanism extends across the EU for small businesses. Worth it when your customers are consumers; usually a loss when your customers are businesses that reclaim VAT anyway.

What is the KOR?

A voluntary VAT exemption for entrepreneurs below €20,000 turnover per calendar year. Opting in means: zero VAT on invoices, zero quarterly returns, and zero input-VAT deduction on costs and investments. Since 2020 the KOR works as a genuine exemption.

Who benefits

The KOR pays off with three traits combined: customers who are mainly private individuals (your invoice becomes effectively 21% cheaper for them), few VAT-carrying business costs, and a stable turnover under €20,000. Typical fits: part-time instructors and teachers, small-scale creatives, first-year starters.

When the KOR costs money

Mainly B2B clients: they deduct your VAT anyway — the KOR only forfeits your own input deduction.
High business costs: a €1,500 laptop carries €260 of deductible input VAT — gone with the KOR.
Investments coming: a car, machine or expensive software carries thousands in VAT.
Growth path: crossing €20,000 forces the switch to regular VAT mid-year.

Worked example

A yoga instructor bills €15,000 to private clients with €1,000 (ex VAT) in costs. With the KOR: profit €13,790. With regular VAT: profit €14,000 — and lesson prices rise from €65 to €79 for her private clients. The KOR wins here exactly when clients are price-sensitive; the €210 input deduction is the price of that positioning.

Crossing the threshold

Crossing €20,000 ends the KOR immediately, with regular VAT from that supply onward and a 3-year re-entry block. Filing mechanics after the switch: filing Dutch VAT returns. Last verified: 19 July 2026.

The neighbouring questions

In the same direction: The Dutch Small Business Scheme (KOR) Explained and Kilometre Administration for Business Cars.

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Frequently Asked Questions

What is the KOR threshold in 2026? +

€20,000 turnover per calendar year. Crossing it ends the KOR immediately, with a 3-year block on re-entry.

Can I deduct VAT under the KOR? +

The KOR removes both the duty to charge VAT and the right to deduct input VAT — purchases book at their VAT-inclusive price as costs.

How do I opt in? +

Online through Mijn Belastingdienst Zakelijk, at least 4 weeks before the intended start. The KOR starts per quarter: 1 January, 1 April, 1 July or 1 October.

What goes on my invoice under the KOR? +

Zero VAT amount or rate; the mandatory line “Vrijgesteld van btw o.g.v. KOR” plus your VAT identification number.

Sources Belastingdienst — btw · KVK Last updated: 11 August 2026