Invoicing under the small business scheme (KOR)

Under the kleineondernemersregeling (KOR, the small business scheme) you don't charge VAT on your turnover. That makes your services cheaper for private clients and saves admin. What does it mean for your invoices?

What is the KOR?

The KOR is a scheme for businesses with a small turnover: at most €20,000 per calendar year in the Netherlands. You register for it yourself with the Belastingdienst (Dutch tax authority). After that you don't charge VAT, and you also can't reclaim VAT on your business expenses.

What your invoice looks like under the KOR

• You charge no VAT: there is no VAT amount on the invoice.
• State that you are exempt from VAT, for example: "VAT exempt under the small business scheme (KOR)". That way your client knows why there is no VAT.
• The other details stay the same: invoice number, date, your details and your client's, KvK (Chamber of Commerce) number, description and amount.

What to watch out for

• Keep an eye on your turnover. If you go over the limit during the year, the KOR no longer applies and you charge VAT again. Check the exact rules with the Belastingdienst.
• Business clients can't deduct VAT on your invoice. For them the KOR doesn't make you cheaper; for private clients it usually does.
• Not sure whether the KOR works out well for you? Your accountant can quickly calculate it for you.

In the free invoice generator you choose "I use the KOR": the VAT disappears and the notice goes on your invoice. In TikBon you switch on the KOR once in your business details.

This is general information, not tax advice. Rules can change; if in doubt, check the website of the Belastingdienst (Dutch tax authority) or ask your accountant.