KOR 2020
06-01-2020
New small business scheme (KOR) 2020
You qualify for the new KOR if:
- You are a VAT entrepreneur,
- You are established in the Netherlands,
- Your turnover does not exceed € 20000 per calendar year.
In the old KOR you could use a supplement during the financial year or by means of a supplement
from the KOR. You must now submit this prior to the financial year in which you want to make use of the scheme for the first time. Your participation is for a period of at least 3 years. As soon as your turnover in 1 calendar year exceeds € 20,000, the new KOR expires and you are not allowed to do anything for 3 more years. When determining your turnover for the new KOR, only your turnover from the Netherlands counts.
When using the new KOR, you no longer calculate and pay VAT up to a turnover of € 20,000. You also no longer submit a VAT return. You can no longer deduct VAT on business costs and investments (the input tax) either.
To determine whether the new KOR is interesting for you, you have to take a good look at your personal situation as an entrepreneur. The basic condition is the turnover threshold of € 20,000 per calendar year.
Is the new scheme (tax) beneficial for you, look at the following:
- Do you deliver to consumers or to companies?
If you deliver products or services to consumers, it is possible to maintain your rate that was previously inclusive of VAT (yields more revenue).
If you deliver to companies, it is more difficult to maintain your rate (previously with VAT). Based on your invoice, they cannot deduct VAT as input tax (you will therefore be more expensive for them).
- How much do you incur and what VAT rate is there?
- Do you want to make (large) investments?
Don't make a hasty decision. In addition to a revenue forecast, also make a good analysis of your costs / investments, but also of your customer base.
In the past 5 years, have you deducted VAT on investments as withholding tax? Then you will be faced with a revision of the VAT if the deducted VAT divided by 5 years is more than € 500, then you have to repay that amount in VAT (for investments in real estate you count 10 years).
Participate now or later?
If you want to participate in the new KOR from 1 January 2020, the registration form must reach the Tax Authorities no later than 20 November 2019. You can also register after 20 November, the starting date will then be postponed to the next period (which means from 1 April 2020).
Do you need advice? Please contact us.