When should you opt for the KOR (Small Businesses Scheme)?

  • Edited 31 March 2026
  • 1 min
  • Starting
  • Finance

What is the Small Businesses Scheme (KOR)? When does your business benefit from the KOR, and when is it better not to use it? This animation explains it all.

Are you expecting less than €20,000 in annual turnover from your business? You may then be eligible to make use of the KOR.

Under the KOR:

  • you do not charge VAT
  • you do not submit VAT returns
  • you do not pay VAT to the Netherlands Tax Administration

But:

  • you cannot deduct VAT you paid for expenses and investments from your tax return

Whether the KOR is the right choice depends on your individual circumstances. Watch the example in this video and see the difference between:

  • Jelle (works for businesses, high expenses)
  • Noor (works for private clients, low expenses)

This will help you quickly determine which option suits you best.