What is the KOR?

With the KOR, you invoice VAT-free and skip VAT returns. In exchange, you lose the right to reclaim VAT on your own purchases.

Who qualifies?

  • Your turnover is below €20,000 per calendar year.
  • Your business is based in the Netherlands.
  • You actively choose to join (you register for it with the Tax Authority).

Advantages and disadvantages

With the KOR, you have less administration. Your invoices are VAT-free, and you skip the quarterly returns. However, reclaiming the VAT you pay on equipment, software or other costs is excluded. If you have high startup costs, you can lose money with the KOR.

When the KOR is a good choice

  • You sell mainly to private consumers, who pay the full price including VAT. Your VAT-free prices are then lower for them.
  • You have low business expenses.
  • You want to keep your VAT administration to a minimum.

When to avoid it

  • You invest heavily at the start and want to reclaim that VAT.
  • Your clients are businesses. They reclaim the VAT on your invoices anyway.
  • You expect to pass €20,000 turnover soon.

How to join or leave

You register for the KOR with the Tax Authority. You choose the period yourself: you can leave at the start of any VAT return period. After you leave, rejoining is excluded for the rest of that year and the next year. Plan ahead, because switching back and forth is restricted.

The scheme is for small Dutch businesses. A foreign company that imports goods into the Netherlands can use fiscal representation for non-EU importers. The fiscal representative arranges the Article 23 licence and files the VAT returns for you.

Every quarter and every year, a Dutch company keeps records and files returns. What does it cost to hand this work over? See bookkeeping in the Netherlands for owners abroad.

Related articles

See also the KOR small business VAT scheme 2026, Dutch VAT rates and the Broodfonds for self-employed people.