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New KOR small business scheme

Dear customers,

Below is the new KOR small business scheme – Kleineondernemersregeling, presented by the Belastingdiesnt since January 1, 2020.

1. If your billing per year does not exceed € 20,000 (Income excluding BTW)?
Starting January 1, 2020, you can apply for the new Small Business Plan (KOR). This gives you a waiver of your BTW liability. That is to say:

to. I can NO longer request VAT (BTW) on your business expenses at any point.
b. You are not required to make the sales declaration (VAT).
c. If you are required to make the tax return
d. You are obliged to continue to carry out the administration of your company (registration of invoices in order in case of audit).
and. This applies to companies eenmanzaak, VoF, BV, Verenigingen and Stichtingen.
F. Applies to any time of seniority of the company.
F. When you apply to the new KOR scheme this scheme is applied for a minimum period of 3 years.

2. The old KOR scheme (Kleineondernemersregeling – Small Business Scheme) will expire from January 1, 2020.
This new waiver replaces the old KOR scheme for small businesses from January 1, 2020. With the old KOR scheme, you did not pay sales tax (VAT), if your VAT (BTW) to be paid during the year was less than € 1345.
to. If you want to register to the new KOR scheme and start using it from January 1, 2020, you must register before November 20, 2019 with the KOR Registration form (Check point 9).

3. Who can participate in the new small business plan?
If you meet the following conditions, you can participate in the new KOR:
to. If you are already a VAT entrepreneur (make your returns on a regular basis).
b. Your company is established in the Netherlands or do you have a permanent establishment here in the Netherlands.
c. Your turnover does not exceed € 20,000 per year (Income excluding VAT).

4. Foundations (stichtingen), associations (verenigingen) and limited partnerships (bv’s) can participate in this new KOR scheme. Participation in the new KOR scheme is not only for natural persons (natuurlijke personen) or associations of natural persons (samenwerkingsverbanden van natuurlijke personen). Legal entities, such as foundations (stichtingen), associations (verenigingen) and BVs, can also use it.

5. Check if you can participate in this new small business scheme
Not sure if you can participate in the new KOR? For example, why don’t you know how to estimate your sales? Or what billing counts for the new KOR? Then check in the following link if you can
participate in the new KOR.
https://www.belastingdienst.nl/wps/wcm/connect/nl/btw/content/kan-ik-gebruikmaken-van-de-kleineondernemersregeling

6. Participating in the new scheme has advantages and disadvantages. You get fewer administrative obligations, that is

Advantages of the dispensation.
• You don’t have to send invoices to your clients. But if you want to send the invoices or if your clients request them, you can do it. All you have to do is indicate on the invoice that a waiver of the
KOR.
• You do not collect VAT from your clients, but you cannot collect VAT on expenses.
• If you issue invoices, you cannot declare VAT (The invoice must have 0% VAT). If at any point you add VAT 9% or 21%, etc. the waiver will expire.
• You do not have to make the VAT declaration for a minimum period of 3 years, however, you can NO longer request the BTW of expense from your company.
• You have to keep your purchase invoices in your administration for a period of 7 years.
• For real estate and rights thereon, a period of 9 years applies, after the year the real estate is put into service.
• The waiver (new KOR scheme) can only start on the first day of your tax filing period.

Disadvantages of dispensation

• The KOR start date must be at least 4 weeks after sending the Registration form. In other words, if you send the form of the KOR scheme before November 20, it would be effective for your company only on January 1, 2020.
• You will not be able to recover VAT on any type of expense. This disadvantage can be very heavy if you make large investments or purchases such as lap tops, equipment, machinery, investments, rentals, etc.
• In some cases, if you still have to make a statement. Use the Incidental VAT Refund Tool to determine if you should file the return.
• You participate for a minimum period of 3 years in the KOR scheme, after your registration, or until your turnover exceeds € 20,000 (Income excluding VAT) in 1 calendar year.

7. To participate or not in the new scheme for small businesses?
Therefore, we have listed a number of examples where you can see how this scheme works in practice for different professional groups and in different situations.
Read some examples of new plans for small businesses at the following link
https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/hoe_werkt_de_btw/nieuwe-kleineondernemersregeling/voorbeelden-nieuwe-kleineondernemersregeling/voorbeelden-neuwewe
Example 1 VAT relocated construction contractor
Example 2 Hairdressing salon with 9% VAT.
Example 3 Accountant with exempt customers and customers who can deduct VAT
Example 4 Merchant on Laptops with Margin Regulation or Intra-Community Deliveries (ICL)

8. Special situations with the new KOR. Are you participating in the new KOR?
Perhaps 1 of the following situations applies to you.
to. You have more sub-companies within 1 company.
As an entrepreneur, do you have more commercial activities within 1 company?
So the KOR scheme applies to all business activities as 1 single company.

b. If you regularly import products from non-EU countries with an Article 23 license, then the Belastingsdienst will withdraw this permit when you enroll in the new KOR scheme.
c. You rent a property to an entrepreneur. Then you cannot opt ​​for the taxed rent if you participate in the new KOR scheme. In other words, collect VAT on said rental.
Have you already opted for taxed rental and are you registering for the new KOR? Then you no longer pay taxes on this rental.

9. Complete KOR rule on the Belastingdienst page
https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/hoe_werkt_de_btw/nieuwe-kleineondernemersregeling/

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