The situation
A Dutch sole trader is using the KOR and has become used to sending invoices without VAT. A strong run of sales pushes turnover above EUR 20,000, but the owner assumes only the excess over the threshold will become taxable later and keeps using the old invoice pattern.
What the KOR actually switched off
Belastingdienst describes the KOR as a real VAT exemption: no VAT charged, no regular VAT returns and no deduction of input VAT on costs and investments. That is why the scheme feels light while the business stays inside it. But the same structure is what makes the exit so important. The business is not just crossing a number. It is leaving an entire VAT posture.
Why the threshold break is harsher than many small businesses expect
Belastingdienst says that once turnover exceeds EUR 20,000 in a calendar year, the business may no longer use the KOR and must deregister immediately. It also says the supply that pushes turnover over the threshold is itself fully taxable, not just the slice above the limit. That is the exact point many owners miss because they think in marginal arithmetic instead of in exemption status.
What the trader should do next
The owner should stop treating the KOR as active, correct the VAT treatment of the triggering sale if needed, and rebuild the invoice and filing process immediately. In the Netherlands, the KOR is easy to enjoy and easy to misread. The safe habit is to watch turnover before the next invoice is issued, not after the threshold has already been broken.
Action checklist
- 1Monitor KOR turnover live instead of estimating it casually at year-end.
- 2Treat the threshold-breaking supply as a normal VAT event, not as a partially exempt one.
- 3Deregister from the KOR immediately once the threshold is exceeded.
- 4Update invoicing and bookkeeping before the next sale is processed.
Educational content only
This scenario is for general education, not personalized tax advice. Confirm specifics with a qualified professional before acting.