Tax relief for Businesses with revenue less than €20.000

Small entrepreneurs and organizations can opt for exemption from VAT
From January 1, 2020, entrepreneurs and organizations with a turnover up to and including € 20,000 can make use of the renewed small business scheme “kleineondernemersregeling” (KOR). With this they are exempt from VAT and they no longer have to submit a VAT return. Entrepreneurs and organizations that qualify for the scheme can choose whether they participate in it. If entrepreneurs want to make use of the KOR as of 1 January 2020, they will inform the Tax Authorities of this by 20 November 2019 at the latest.

Less administration
Entrepreneurs and organizations that opt ​​to participate in the new KOR no longer have to charge VAT and no longer have to submit a VAT return every quarter. In addition, they can no longer offset the VAT that other entrepreneurs charge them. The KOR provides entrepreneurs with less administration. Participation in the KOR applies for a period of at least three years or as long as the turnover per calendar year does not exceed € 20,000.

Choice of participation for every small entrepreneur differently
For entrepreneurs who want to know if they are eligible for the new KOR, the Tax Authorities have developed a tool. If entrepreneurs meet the conditions, they can decide for themselves whether the scheme is of interest to them. There are several factors that can influence this choice. For example, does an entrepreneur get VAT back annually? Should a great deal be invested in the coming period? Does the entrepreneur mainly have private or business customers? All these factors can lead to two entrepreneurs with a comparable company and turnover ultimately making a different choice. The Tax and Customs Administration developed a number of practical examples to show how small entrepreneurs made their choice.

November 20 deadline for participation in a small business scheme
If small entrepreneurs decide to participate as of 1 January 2020, they must complete the registration form and send it to the Tax Authorities. The registration must reach the Tax Authorities no later than 20 November.

The entrepreneurs who receive a discount on VAT from the current scheme and want to participate in the new KOR in 2020 must actively register themselves. Entrepreneurs who are currently exempt from VAT returns based on the exemption from administrative obligations automatically participate in the new scheme. With the entry into force of the new COR, the current arrangement will be abolished.
For more information about the new KOR, visit www.belastingdienst.nl/kor

Examples
Bob: “I am participating in the new KOR, because then I can count on a competitive price.

I recently quit my job at the Ministry of Infrastructure and the Environment. I want to take it a bit easier. Moreover, my partner earns enough.

I started as a career coach. I have work for around 2 days a week. My customers are actually all private individuals. If I participate in the new KOR, there will be no VAT on top of my rate. This makes me cheaper for my private customers. This makes it easier for me to attract new customers. Moreover, I hate to do administration and with the new KOR I save myself a lot in that regard. That’s why I decided to sign up for the new KOR. “

Fatima: “I am not participating in the new KOR, because I am going to make investments.

I am employed as a doctor’s assistant, I do that 3 days a week. I also have my own company: I work as a photographer. I usually do weddings, but I am also occasionally asked to photograph company presentations.

I plan to make a number of investments in the coming year. I want to buy a new camera and a computer on which I can run the latest photo editing program. Because I want to be able to deduct the VAT on these investments, I have decided not to participate in the new KOR for the time being. ”

Source: Stichting ZZP Nederland

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