The KOR small-business VAT scheme: should you opt in?
When opting into the Dutch KOR small-business VAT scheme pays off and when it costs you — the €20,000 limit, who benefits (B2C, low costs), who shouldn't (B2B, big purchases), and how it works in practice.
Last updated 25 June 2026
The KOR (kleineondernemersregeling) is a VAT exemption for small businesses. Used well it cuts your admin; used wrong it costs you money. Here's how to decide.
What the KOR does
If your annual turnover is €20,000 or less, you can opt into the KOR and then:
- You don't charge BTW to your clients.
- You don't file BTW returns — a real admin saving.
The trade-off: you can't reclaim the BTW you pay on your own costs and purchases (voorbelasting). So the KOR helps some freelancers and hurts others.
When the KOR is a good idea
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DutchNewcomer provides tax information, not tax advice. Always consult a certified tax advisor (belastingadviseur) for your personal situation.