In coming weeks, some 300,000 entrepreneurs who participate in small business scheme (KOR) will receive letter re changes to KOR and introduction of new EU-KOR.
Most important KOR changes mandatory participation period of 3 years is abolished.
Now KOR participants with turnover of up to €20,000 per calendar year are required to participate for 3 years, this will expire on Jan. 1, 2025.
It will therefore be possible for entrepreneurs in KOR to unsubscribe at any time.
Re-registering for KOR will be quicker, for re-registration 3 yrs wait no longer needed.
From Jan. 1, 2025, this so-called exclusion period will only apply to remainder of calendar year in which entrepreneur deregistered and the calendar year after that.
Soon to be able to register or deregister in My Tax Authorities Business; from Oct. 1, registering or deregistering for KOR will be easier and faster in the cited website.
Participation in KOR ends for foreign entrepreneurs; if entrepreneur not established in NLD but has permanent establishment for VAT and is registered for KOR, may no longer participate in KOR from Jan. 1, 2025.
EU-KOR
Until Jan. 1, 2025, entrepreneurs established in NLD can only apply KOR in NLD.
With EU-KOR, they can get VAT exemption for 1/+EU states where they do business.
If participant in EU-KOR in France, Belgium, Italy, to receive VAT exemption in these.
Can also choose to participate in EU-KOR only in one and receive VAT exemption in it.
With EU-KOR, not VAT charge to customers in other EU countries, not VAT deduction there, not even for costs incurred for deliveries, no VAT payment to tax authorities of country where doing business, so no need for VAT return there.
In addition, must submit quarterly turnover statement to NLD Tax every quarter; this is overview of turnover achieved in quarter in the entire EU.
Participation in EU-KOR is subject to conditions e.g. company's head office must be in NLD; maximum annual turnover of €100,000 (in all EU countries, including NLD).
Participants in EU-KOR must also adhere to national turnover limit of EU country where they wish to apply the VAT exemption.
