What is KOR (Kleineondernemersregeling)?

The KOR (Kleineondernemersregeling) is a practical simplification for very small Dutch businesses. It eliminates the BTW compliance burden for entrepreneurs with modest turnover, at the cost of losing input BTW recovery.

**Who can use KOR**

KOR is available to: - All businesses established in the Netherlands with taxable supplies of goods and services below EUR 20,000 per calendar year - From 2025, also EU-established businesses (EU KOR) for supplies to Dutch consumers under EUR 100,000 across the EU, of which a maximum of EUR 20,000 in any single EU country - Both BV structures and sole traders (eenmanszaak)

The EUR 20,000 threshold is calculated on the total of all Dutch taxable supplies (including zero-rated). If turnover is projected to exceed EUR 20,000, the business must deregister from KOR.

**Practical effects of KOR**

Under KOR: - You do not add BTW to your invoices (you are BTW-exempt) - You do not file quarterly BTW returns - You cannot reclaim BTW on purchases, overheads, or capital expenditure - Your invoices must state you are using the KOR and therefore not charging BTW

**B2C versus B2B consideration**

KOR is generally more attractive for B2C businesses where customers cannot recover BTW anyway. For B2B businesses where clients are VAT-registered and can recover input BTW, not charging BTW is neutral for the client but means the seller bears all the BTW on their own costs without recovery.

**Minimum commitment**

Once registered for KOR, the business must remain in it for at least 3 calendar years (unless turnover exceeds EUR 20,000, at which point they must exit). Opting in and out freely is not permitted.

**How to register**

Register via the Belastingdienst portal (Mijn Belastingdienst Zakelijk). For existing BTW-registered businesses, submit the KOR application before 20 November to have it apply from 1 January of the following year.

**The decision calculus**

If your BTW-bearing costs are significant (e.g., you buy a lot of equipment, software, or professional services with BTW), KOR may not be beneficial. Calculate: BTW on your sales minus BTW on your costs. If net BTW payable is small and admin is burdensome, KOR wins. If you regularly receive BTW refunds (input exceeds output), KOR is the wrong choice.