Kleineondernemersregeling (KOR) – Frequently Asked Questions

The kleineondernemersregeling (KOR) is a Dutch VAT exemption for small entrepreneurs with a turnover under €20,000 per calendar year. Below you’ll find the most common questions and answers — in plain language.

 

💡 Why should I apply for the KOR?

• Less hassle: No more quarterly VAT returns.
• No mistakes or fines: You won’t forget to file VAT in the Netherlands.
• Simple invoicing: Your invoices just mention the exemption (see example below).
• Extra helpful for teachers: If you mainly earn income from music lessons for students under 21 years old (VAT-exempt) and only occasionally do taxable gigs, then most of your income doesn’t count towards the €20,000 limit anyway. The KOR keeps the small VAT part of your work simple.

 

📅 When should I apply?

• You can only join the KOR at the start of a new quarter.
• The application must be submitted at least 1 month before that quarter begins.
• Example: If you want to start the KOR from Q2, apply before 1 March.

Important:
Right after you register at the KvK, you are VAT-liable until the KOR starts. That means:

• You must issue invoices with VAT in your first quarter.
• You can use that quarter to reclaim VAT on investments (e.g. new laptop, instruments, studio gear).
• If your VAT refund is €500 or less, you keep the full refund even after switching to the KOR.
• If your VAT refund is over €500, you’ll need to pay back 1/20th of the VAT refund for each quarter you stay in the KOR (correction rule).

 

📝 How do I apply?

• Log in to Mijn Belastingdienst Zakelijk.
• Go to Vrijstellingen → Kleineondernemersregeling.
• Fill in the form and submit.

You’ll get a letter confirming from which quarter the KOR starts.

 

💶 What happens with VAT refunds?

• While in the KOR, you can no longer reclaim VAT on your purchases or investments.
• Example: A laptop for €1,210 incl. 21% VAT → you can’t reclaim the €210.
• If you combine teaching (VAT-exempt) with gigs (VAT-liable), you can only reclaim VAT on costs linked to the taxable part of your work.
• For general costs (like instruments or travel), you can only deduct VAT for the proportion of your income that is taxable.
• Example: If 80% of your turnover is from teaching and 20% from gigs, you can only reclaim 20% of the VAT on your general expenses.
• 👉 That’s why the KOR is attractive for teachers with occasional gigs: you avoid complex VAT calculations and don’t lose much in refunds anyway.

 

🌍 Does the KOR also work abroad?

No. The KOR is only valid in the Netherlands.

• For business clients in the EU, you still use reverse-charge VAT on invoices. You must also file ICP declarations for those transactions.
• For private clients abroad (B2C), local VAT rules of their country apply.
• If you sell internationally, you may need extra VAT registrations or use the One Stop Shop (OSS / Unieregeling) to declare VAT in multiple EU countries via one Dutch return.

 

🛒 What about EU-KOR?

Be careful not to confuse the Dutch KOR with:

• the OSS (One Stop Shop - Unieregeling) → EU system for B2C sales abroad, and
• the EU-KOR → a completely different scheme.

EU-KOR is the EU small business scheme, where you report your full turnover per country in which you opted for the exemption. There is no distinction between B2C and B2B.

This means:

• If you’re active in multiple EU countries, you can sometimes avoid foreign VAT duties under the EU-KOR.
• But you’re back to extra administration (quarterly reporting), even if you use the Dutch KOR.

 

🧾 What should I put on my invoices?

If you’re in the KOR, use this line on every invoice:

Vrijgesteld van omzetbelasting o.g.v. art. 25 Wet OB (Kleineondernemersregeling).
Exempt from VAT under Article 25 of the Dutch VAT Act (Small Business Scheme – valid in the Netherlands only).

If you're in the EU-KOR, the invoice line will depend on which country you're billing in and on in which local legislation the implementation of the EU directive has been made effective, though you could always write something along the lines of the following:

Exempted from VAT through application of the SME under Council Directive (EU) 2020/285 (EU-KOR).

✅ In short:

• The KOR saves time if you work mostly in the Netherlands and have low costs.
• It’s especially useful if you teach under-21s and only have a few taxable gigs.
• Right after KvK registration, use your first VAT-liable quarter to your advantage (invest and reclaim VAT).
• Don’t forget: the KOR stops at the border, and international sales may require OSS or EU-KOR filings.