Timely application for KOR from 1 January 2025

Timely application for KOR from 1 January 2025

Do you expect your annual turnover to remain below €20,000 in the coming years? If so, you may be interested in signing up for the small business scheme (KOR). You are then exempt from VAT and have fewer administrative obligations. For example, you usually no longer have to file a VAT return. Participation in the KOR can be advantageous for you if you have to pay VAT annually or if your customers cannot deduct VAT. In principle, the exemption then makes your products or services cheaper for them. Do you recover VAT annually or can your customers deduct VAT? Then participation is usually not interesting. This also applies if your turnover varies greatly each year and you are not sure that your turnover remains below the €20,000 threshold. As soon as your turnover exceeds €20,000 in a calendar year, the KOR is no longer valid. To participate in the KOR as of 1 January 2025, your application must be received by the Tax and Customs Administration before 3 December.

Tip
Check that you have declared the correct sales tax number and make sure you apply in time if you want to participate in the KOR from 1 January 2025. It is wise to involve a VAT advisor in your deliberations.