Netherlands Opens Small Business Scheme to Foreign Companies

The Netherlands will allow foreign EU companies to apply the small businesses VAT scheme by 2025.

The Netherlands is set to extend the Small Business VAT scheme, also known as KOR, to foreign EU companies by 2025. This move will enable companies established in another EU Member State to participate in the special VAT scheme, provided their annual turnover within the EU does not exceed EUR 100,000.

Currently, the KOR in the Netherlands exempts Dutch businesses with a turnover not exceeding EUR 20,000 in a calendar year from VAT obligations. This exemption means that eligible businesses are not required to charge VAT on their sales, nor can they deduct VAT from their business purchases.

Starting from January 2025, EU foreign businesses meeting the criteria of an annual turnover not exceeding EUR 100,000 will also be eligible to apply for this special VAT regime in the Netherlands.

It is important to note that the Dutch small business scheme excludes certain transactions, such as the supply of new means of transport dispatched or transported to another Member State, immovable property, and some related rights.

For more detailed information on the Small Business Scheme in the Netherlands, you can refer to the following link. Additionally, find here the relevant legislation has been published in the Official Gazette.

Check the section about VAT registrations in The Netherlands from our VAT manual. 

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