The Small Business Scheme (kleineondernemersregeling, KOR) is a VAT exemption for entrepreneurs with less than €20,000 in annual revenue.
KOR scheme
How can a freelancer apply for KOR?
Freelancers (zzp'ers) must apply for the KOR themselves with the Dutch Tax Authority. Once approved:
- No VAT needs to be charged to clients
- No VAT can be reclaimed on expenses or investments
This makes bookkeeping simpler for freelancers.
Benefits of the KOR scheme
Simplified administration for you as a freelancer.
Drawbacks of the KOR scheme
- VAT on expenses and investments can no longer be reclaimed
- The scheme ends once the €20,000 turnover threshold is exceeded
- Clients cannot reclaim VAT
- Exceeding the threshold requires administrative adjustments for both freelancers and intermediaries
How to set up KOR in Finqle
- 1Go to My Profile
- 2Enable the option VAT-exempt (KOR)
- 3Only do this after you have received confirmation from the Dutch Tax Authority that you qualify for KOR
VAT exemption
More information about VAT exemption is available on the Dutch Tax Authority website: belastingdienst.nl
VAT for non-NL merchants
The KOR scheme is Dutch-only: it is administered by the Dutch Tax Authority and only applies to businesses registered in the Netherlands. If your business is registered outside the Netherlands, including Belgium, Finqle cannot apply KOR to your account, and your VAT setup depends on your own country's rules.
- Your VAT number format is validated against your country's standard. Belgian VAT numbers, for example, follow a different format than Dutch ones, which is why some non-NL merchants see a validation error during onboarding.
- Cross-border VAT treatment (reverse charge, local exemption schemes) is not something Finqle can advise on directly. Consult your own tax advisor.
Contact info@finqle.com before onboarding if you are a non-NL merchant, so we can confirm your VAT number format and invoicing setup with you directly.