The small business scheme (KOR) was created by the tax for starting entrepreneurs. It is an exemption from the VAT you pay. You can use the KOR if you are located in the Netherlands and have no more than € 20,000 turnover in 1 calendar year. Below, a table explains the KOR (this is an example).
| No KOR | Well KOR | |
| Basis | €16.00 | €16.00 |
| VAT (received) | €3.36 | €0.00 |
| Pay VAT) | € -3.36 | €0.00 |
| Final amount | €16.00 | €16.00 |
1. Do participate in the KOR.
If you do participate in the KOR (right side of the image), you will not receive VAT and you do not have to pay it. If you do participate in the KOR, we will invoice the client €16 per hour on your behalf, the VAT percentage here is 0%.
2. Not participating in the KOR.
If you do not participate in the KOR (left side of the image), you will receive 21% VAT, but you must also pay this to the tax authorities. We will then invoice the client for €19.36 per hour on your behalf and the client can reclaim €3.36 (21%) of this from the tax authorities, because that is VAT. In both cases you will be left with 16 euros per hour. It therefore does not matter to Hollandworx whether you participate in the KOR or not. It can make a difference for you whether or not you participate in the KOR. For advice about your personal situation, we recommend that you contact the tax authorities. You can do this via this link .
For information about the KOR, click here . Do you want to know how to apply for the KOR as a self-employed person? Then click here .