NLD GVT issued parliamentary letter on the re-imposition of payment default fines for entrepreneurs participating in the EU VAT e-Commerce scheme.
Letter also informed parliament of policy decision on small business scheme (KOR).
Follows NLD Tax Sep. 2024 issued changes to KOR, introduction of EU-KOR, #225015.
Default Fines
On Oct. 23, 2023, decision was taken to temporarily withhold imposition payment default fines on entrepreneurs participating in the EU VAT e-Commerce scheme.
Decision now taken to resume imposing payment default fines as of Jan. 1, 2025.
Start-up problems largely resolved; no longer any reason not to impose these fines.
Policy Decison
KOR is a VAT exemption for entrepreneurs with a turnover of up to €20,000 per year.
From Jan. 1, 2025, entrepreneurs established in the Netherlands will also be able to apply the KOR in other member states, the so-called EU-KOR.
After admission to EU-KOR, entrepreneurs required to provide turnover information every quarter to assess whether the turnover thresholds of the KOR are met.
If entrepreneur exceeds turnover thresholds, he or she can no longer apply KOR.
Based on the legal provisions that will enter into force on Jan. 1, 2025, it is possible that registration and admission to the KOR take place in the same quarter.
May mean that the turnover information that the entrepreneur provides with the first quarterly report has already been (partly) provided upon registration.
There is a chance that, as a result of double counting, the turnover threshold has been exceeded, meaning that entrepreneurs are no longer allowed to use the KOR.
To prevent that state secretary has approved policy decision: as of Jan. 1, 2025, in anticipation of legislation from Jan. 1, 2026, entrepreneur does not also have to include information he or she provides for KOR registration in first quarterly report.
