Entrepreneurs who are liable to pay VAT and whose annual turnover is no more than € 1,800 can apply the small business VAT exemption scheme (KOR) without having to notify the Belastingdienst (Dutch Revenue Service). This was recently approved by a ministerial decree. This decree has retroactive effect to January 1, 2020.
Entrepreneurs liable to pay VAT with an annual turnover of less than € 20,000 can apply the KOR, but will have to register with the Belastingdienst for the purpose. The entrepreneur then does not owe VAT on his supplies and services. Nor does he have to file a VAT return. On the other hand, he is no longer entitled to deduction of VAT. If an entrepreneur opts for the KOR, he will be bound by it for at least three years.
No longer bound by KOR for three years
The decree of the Ministry of Finance provides that entrepreneurs liable to pay VAT, who have an annual turnover of no more than € 1,800 and want to apply the KOR no longer have to notify the Belastingdienst. They are now no longer bound by the minimum application term of three years for the KOR or by a notice of termination of the scheme. This decree has retroactive effect to January 1, 2020, the date when the current KOR came into force. This prevents entrepreneurs who remain below the notification threshold but failed to report this, from having to do so at a later date.