Since January 2020, there has been a Small Businesses Scheme (kleineondernemersregeling, KOR). There is no longer a reduction on the VAT (btw) to be remitted, but instead you can opt for a VAT exemption. You will then no longer receive VAT and therefore no longer have to declare VAT. Whether this is interesting for you, you can read in our white paper.
How does the Small Businesses Scheme (KOR) work?
With the introduction of the KOR, you receive a VAT exemption instead of a tax reduction. You can use this if your turnover does not exceed €20,000 per calendar year. The advantage is that you no longer have to file VAT returns, the disadvantage is that you can no longer reclaim VAT on costs incurred. You apply for the Small Businesses Scheme for three years. You cannot simply cancel it in the interim. For this, you need to contact the Tax Authorities (Belastingdienst). You can find more information about the Small Businesses Scheme here.
What are the advantages & disadvantages of the KOR?
Some freelancers consciously choose whether to use the KOR scheme. Read their story.
In addition, you can read much more about the KOR in this article.
Signing up for the KOR?
If you want to participate in the Small Businesses Scheme, you can register yourself with your VAT ID (btw-ID) by the Tax Authorities using a form. Keep in mind that the Tax Authorities need four weeks to process your application and that the Small Businesses Scheme starts from the first following quarter. This means that you will still receive VAT on all your invoices until then. Don't forget to indicate this on your YoungOnes profile! As soon as the Small Businesses Scheme takes effect, it will be applied to all invoices issued from that moment on. So suppose the Small Businesses Scheme takes effect on April 1 and on April 4 you receive an invoice from your March gig, the Small Businesses Scheme will be applied.
Please note: it is your responsibility to properly inform us whether you are using the Small Businesses Scheme and as of when. We cannot change the VAT on the invoices afterwards.