The Dutch KOR cuts VAT admin, but it also cuts off input VAT recovery

The hook

“Small-business VAT relief sounds all-upside until you remember what you give up.”

Belastingdienst says that if you join the small business scheme, you generally do not charge VAT and you do not submit the normal VAT returns tied to ordinary turnover. But the same KOR guidance makes clear that you also cannot deduct or reclaim VAT charged to you. That means the scheme is not just a simplification. It is a trade-off.

The takeaway

KOR works best when the admin savings are worth more than the input VAT you are leaving on the table.

Official sources

Wat betekent meedoen met de kleineondernemersregeling (KOR)?Is btw-aangifte doen verplicht?

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