Applying for KOR — Small Business VAT Exemption in the Netherlands (2026)

If you are a freelancer in the Netherlands, receiving a VAT number does not always mean you have to charge VAT. The Kleineondernemersregeling (KOR) can exempt small businesses from VAT obligations.

With KOR, you do not charge VAT and generally do not file quarterly VAT returns. But there is a trade-off: you cannot reclaim VAT on business expenses.

This guide explains when KOR is advantageous, how to apply, what to put on your invoices, and when to stop using it.

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What is the KOR?

The KOR (Small Businesses Scheme) is a VAT exemption for entrepreneurs with annual turnover up to EUR 20,000 (excluding VAT).

In practice, this means:

• You charge no VAT on invoices
• You usually file no quarterly VAT returns
• You cannot reclaim input VAT on expenses

For many new freelancers, this simplifies administration significantly.

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KOR advantages and disadvantages

Advantages

1. No VAT returns
   You save time and admin work.

2. Potentially more attractive for private clients
   Private clients cannot reclaim VAT, so your total invoice can look lower.

3. Simpler bookkeeping flow
   Less VAT complexity in day-to-day invoicing.

Disadvantages

1. No VAT deduction on business costs
   You cannot reclaim VAT on purchases like software, equipment, or office costs.

2. Sometimes less attractive for B2B clients
   Some businesses prefer standard VAT invoices.

3. EUR 20,000 ceiling
   If you grow quickly, you must switch back during the year.

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When is KOR beneficial?

KOR is usually most beneficial when:

1. Your business costs are relatively low
2. You mostly serve private clients

As a rough rule, if your costs are below about 20% of turnover, KOR can be attractive.

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When is KOR not beneficial?

KOR is often less attractive if:

• You have high costs (equipment, software, office rent)
• You expect fast growth above EUR 20,000
• You mainly invoice VAT-registered businesses

In those cases, regular VAT status may be more financially efficient.

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How to apply for KOR

Step 1 — Check eligibility

You can apply if:

• Expected annual turnover is not above EUR 20,000 (excl. VAT)
• Your business is established in the Netherlands

Step 2 — Apply in Mijn Belastingdienst Zakelijk

1. Log in via Mijn Belastingdienst Zakelijk
2. Go to VAT/Omzetbelasting
3. Choose "Apply for Kleineondernemersregeling"
4. Confirm expected turnover

Step 3 — Update invoice wording

Once active, apply KOR wording consistently on all invoices.

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What to put on your invoice with KOR

Use this line:

"VAT exempt under the Small Businesses Scheme (KOR)"

Or:

"No VAT due under the Small Businesses Scheme (KOR)"

Do not include VAT rates or VAT amounts.

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Example KOR invoice

INVOICE

From:
Your Business
Street 1, 1234 AB Amsterdam
KvK: 12345678
VAT ID: NL123456789B01

To:
Client B.V.
Client Street 5, 5678 CD Rotterdam

Invoice number: 2026-015
Invoice date: 10 March 2026
Payment term: 30 days

Description                              Amount
Website design — phase 2                 EUR 1,500.00

Total                                    EUR 1,500.00

VAT exempt under the Small Businesses Scheme (KOR).

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What if you exceed EUR 20,000 turnover?

As soon as you expect to exceed the threshold in the current year, notify the Belastingdienst immediately.

From the relevant date onward:

• You must charge VAT
• You must file VAT returns again
• You can reclaim input VAT again

Late reporting can lead to corrections and penalties.

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Common mistakes with KOR

Missing KOR wording on invoices

This can make invoices formally incorrect.

Reporting threshold too late

You must report when you expect to exceed, not only after exceeding.

Choosing KOR despite high costs

Run a financial comparison first; missed VAT deduction can be substantial.

Stopping VAT admin completely

Even with KOR, record-keeping remains mandatory.

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Should you choose KOR?

Often yes, if:

• Costs are low
• You mostly work with private clients
• You expect to stay below EUR 20,000
• You value simple administration

Often no, if:

• Costs are high
• You expect fast growth
• You primarily serve business clients

Invoice with or without VAT — Declair supports both →

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Frequently Asked Questions

What is the KOR?

A Dutch VAT exemption for small businesses up to EUR 20,000 annual turnover.

Can I stop KOR later?

Yes, and you must stop when exceeding the turnover threshold.

Can I use KOR if I also have a job?

Yes. The threshold applies to business turnover only.

What should be on KOR invoices?

KOR exemption wording, and no VAT rate or VAT amount.

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Related guides: How to Invoice as a Freelancer in the Netherlands and What Must Be on an Invoice.