Would you like to participate in the small business scheme in 2026? – The Happy Financial

Register before December 3!

Utrecht, November 4, 2025 – Easier administration because in most cases you do not have to file a regular VAT return. This is possible with the Small Business Scheme (KOR) of the Tax Authorities. The deadline to participate in the KOR from January 1, 2026 is approaching. Are you a starting or small entrepreneur? And are you considering using the KOR? Check with the points below whether the KOR suits your situation. And register before December 3, 2025 to participate from January 1, 2026.

The KOR is intended for small entrepreneurs with an annual turnover of up to 20,000 euros. Does your annual turnover remain below 20,000 euros? Then you can register for the KOR. It is good to know that the KOR is a VAT exemption. This means that you no longer have to submit a regular VAT return. You are also not allowed to charge VAT to your customers. On the other hand, you can no longer reclaim VAT on costs and investments.

Conditions apply to participation in the KOR. In addition to the maximum annual turnover, your company must be located in the Netherlands. The goods or services you supply must also be subject to VAT. We do not count turnover that is exempt from VAT to determine the turnover limit.

Is the small business scheme suitable for me?

Whether the KOR suits you depends on your specific situation. Using the points below you can check whether participation in the KOR is interesting for you:

• Do you have to pay VAT on balance on your tax return each year? Then the KOR is often advantageous, because you do not have to pay VAT. Do you receive a net VAT refund on your tax return every year? You will not receive VAT back with the KOR, in which case the scheme is less attractive.
• Who are your customers? If you mainly have private customers, the KOR can be beneficial. Because you don’t have to charge VAT, you can keep the price low. Do you mainly have business customers? Most business customers want an invoice with VAT, because they can often deduct it. In most cases, the KOR is less favorable for business customers.
• Do you have a lot of purchasing costs or investments? Then the KOR is often less interesting, as you cannot deduct the VAT on it. If you have low purchasing costs and few investments, it does not matter much whether you participate.

How can I participate in the KOR from January 1, 2026?

Do you meet the conditions for participation in the KOR? Then register before December 3 via My Tax Authorities for Business.

File a VAT return until the KOR comes into effect

You can only register for the KOR if you have registered with the Chamber of Commerce and have received a sales tax number from the Tax Authorities. If your registration has been received by the Tax Authorities no later than 4 weeks before the start of the next quarter, you can participate in the KOR from the following quarter. You always file a VAT return for the period until the KOR comes into effect.

Are you registering for the KOR within 4 weeks before the start of the next quarter? Then you do not participate in the next quarter, but the quarter after that. For example: if you register for participation in the KOR on December 12, 2025, you will participate from April 1, 2026. And you must file a VAT return for the first quarter of 2026.

Unsubscribe from the KOR

Do you want to quit the KOR? You can arrange this via My Business Tax Authorities. Deregister with the Tax Authorities no later than one month before the end of the quarter in which you want to quit. You cannot participate in the KOR again in the year in which the termination takes effect and the following year. If your annual turnover rises above 20,000 euros, you must immediately deregister from the KOR. From sales that exceed the €20,000 limit, you must charge VAT to your customers and submit a VAT return again.