About KOR (KOR-kleineondernemersregeling) - initially as one of the tax incentives for private entrepreneurs with a small income, we already wrote.
Since January 1, 2020, this system has been seriously changed and expanded within the framework of the subjects of use, and, in our opinion, it has become easier to administer and declare. We also wrote about these changes in our review.
In short, we can say that the new KOR scheme involves not just tax benefits, but exemption from both the accrual, refund and payment of VAT (BTW), as well as from related administrative and tax obligations.
But it must be remembered that if you decide to switch to KOR, then your choice cannot be changed for 3 years or until the turnover of your business within one calendar year exceeds the threshold of 20 euros.
Participation in the KOR is optional, and this system is more profitable for those entrepreneurs who do not make expensive investments in their business and work mainly with individuals or organizations that cannot refund paid VAT.
What to do next, if after studying everything, you understand that you are suitable for the KOR system (for this you can use next tool) and decide that this system is right for your business? You need to submit the appropriate application form to the tax authorities at least 4 weeks before the start of the next reporting period (usually a quarter).
And right now, in November 2020, you need to do this if you want the KOR to apply to your business from January 1, 2021. You can order the completion of this application form from us by following the link:
https://www.nalog.nl/all_services/private_persons/osvobozhdenie-kor/
Please do not be late - from December 1, 2020, for the above date, this will no longer be possible.
Publication Date: 09.11.2020
