NDL GVT published a letter to the house of representatives on research on introduction of new small business scheme, relating to a turnover exemption for business taxation.
Summary
Since Jan. 1, 2020, the Turnover tax act 1968 included an optional turnover-related exemption from turnover tax for small entrepreneurs, to reduce relevant tax burden.
The new exemption scheme replaces this old small business scheme and the scheme has a turnover limit of €20,000 and should be more in line with goals of the scheme.
In the explanatory memorandum to the current bill, NLD GVT expressed its intention to investigate the use of the new small business scheme to identify who would use it.
The Secretary of State for Finance had therefore instigated a report for parliament to assess the potential use of such a facility and the results are attached to the letter.
Next Steps
NLD GVT will take the results of the study into the introduction of the new small business scheme into account in the subsequent decision-making process for proposal.
This will then be included in implementation of the Small Business Scheme Directive.
Jan. 2023 Technical Error
On Jan. 5, 2023, NLD Tax said paper sales tax returns 2022 were wrongly sent if entrepreneurs opted out of the small business scheme from Jan. 1, 2023.
If an entrepreneur used the small business scheme in 2022 and unsubscribed from it as of Jan. 1, 2023 there is no need to file a 2022 turnover tax return.
If an intermediary filed tax return, make aware the declaration was sent incorrectly.
Feb. 2023 Amendment Report
On Feb. 24, 2023, NLD GVT issued further report on the legislative proposal for the implementation of the small business scheme directive regarding VAT exemption.
Legislative proposal was entitled small businesses regulation implementation act.
The bill aimed to implement the EU small business scheme directive 2020/2851 (the dir) in the Dutch turnover tax act 1968 to ensure application from Jan. 1, 2025.
Following the report's comments, adjustments to the memos and the bill were desired.
The Dutch small businesses scheme (KOR) was adjusted with effect from Jan. 1, 2020.
The present implementation bill broadly changes the Dutch KOR as of Jan. 1, 2025.
It will be, thus, possible for an entrepreneur established in the EU but not established in the NLD, whose turnover in the Union does not exceed € 100,000, to apply the KOR.
For transactions taxable in the NLD, provided that he will meet the Dutch conditions.
In this context, the Netherlands maintain the national turnover threshold of €20,000.
The report required for the bill's explanatory note to justify the limit of €1,800 to be qualified as a very small entrepreneur and the distinction from small entrepreneur.
Amended explanatory notes explained the thresholds and registration for exemption.
NLD GVT decided to include the approval of VAT exemption for solar panel holders in the implementation bill instead of in an earlier statutory regulation, as prior proposed.
To examine the bill's enforceability by the tax authorities, an implementation test was conducted showing ambiguities re e-commerce and modernization of OB landscape.
NLD GVT explained that the test's review would not lead to major changes to the bill.
More clarity re the actions by the tax inspector that contain a cross-border component.
The amended bill and amended explanatory memorandum will be sent to NLD PRL.
Available online is the expired explanatory memorandum to the amendment of the turnover tax act 1968 in connection with the small business scheme amendment.
Regulates implementation of directive 2020/285, enabling a small business to apply for small business scheme of another member state if such a scheme is available.
Will be achieved with implementation of directive in Turnover tax act 1968.
Makes provision for application to schemes in other member states, from Jan. 1, 2025.
Regulators
NLD GVT; NLD Tax
Entity Types
Auditor; Corp
Reference
PR, Bill 36312, 7/4/2023; CP, Rp 2023-0000035029, PR, 2/24/2023; PR, 1/5/2023; Rp, PR 2/9/2022; Turnover Tax Act 1968; Dir 2020/285
