Changes to the Small Business Ordinance (KOR) scheme from 1 January 2025

The small business scheme (Kleinondernemersregeling - KOR) allows entrepreneurs with a small income not to pay or report VAT (BTW).

From 1 January 2025, the KOR will undergo significant changes that will affect both Dutch and foreign entrepreneurs, and it is important to stay up to date with the changes.

1. Introduction of the European version of KOR

From 2025, a European version of KOR (EU-KOR) will be introduced, which will allow entrepreneurs to participate in the KOR scheme in other countries of the European Union.

2. Flexible participation period

Previously, choosing to participate in KOR imposed a commitment to remain in the program for three years. Now this period has been abolished, and entrepreneurs will be able to leave the program at any time.

3. Accelerated re-registration process

It is now possible to re-register more quickly. If you have already participated in KOR and want to register again, the so-called "exclusion period" now only applies to the remainder of the calendar year in which the entrepreneur cancelled participation and to the following calendar year. Previously, this period was 3 years.

4. Income threshold for Dutch entrepreneurs

For entrepreneurs registered in the Netherlands, the rule remains: participation in the KOR is only possible if their income in the previous calendar year did not exceed €20. Exceeding this amount makes it impossible to use the KOR.

5. End of participation for foreign entrepreneurs

If you are not registered in the Netherlands but have a branch or warehouse from which you conduct business and pay VAT, and you are registered to participate in the KOR, you will no longer be able to participate in the scheme from 1 January 2025.

Want to start your own business but are worried that your initial income will be too low? You can use KOR. 

Find out more about starting a business during a consultation with our specialist!