KOR (Kleineondernemersregeling) in the Netherlands: VAT exemption for freelancers (2026)

What is the Dutch small businesses scheme (KOR) for VAT in 2026?

Kleineondernemersregeling (KOR) is a Dutch VAT (btw) exemption for entrepreneurs established in the Netherlands with annual turnover of €20,000 or less. When participating, the entrepreneur does not charge VAT on sales, normally stops filing periodic VAT returns (BTW-aangifte), and cannot deduct input VAT on costs and investments. KOR is optional, but it changes invoicing and cross-border VAT handling.

Browse the [Knowledge Hub](/knowledge-hub) for more freelancer accounting guides. KOR reduces VAT administration because a participating freelancer normally does not submit periodic VAT returns (BTW-aangifte) and does not add VAT to invoices. The VAT exemption applies only to VAT; income tax (inkomstenbelasting) rules and record-keeping still apply. For VAT basics and filing deadlines outside KOR, see the [VAT return guide](/knowledge-hub/vat-returns-netherlands-expat-freelancer-guide).

KOR can be expensive if the freelancer has high business costs with VAT. Example: a laptop invoice of €2,000 plus VAT can include €420 of input VAT. A participant in KOR cannot reclaim that €420 as VAT. When the freelancer regularly receives VAT refunds or plans investments, the financial trade-off can outweigh the administrative simplicity.

• Turnover cap: €20,000 per calendar year (and the €20,000 test also applies to the previous calendar year).
• No VAT on invoices: do not show a VAT rate or VAT amount; state that the KOR exemption applies.
• No periodic VAT returns (BTW-aangifte), except in situations where an incidental VAT return is required.
• No deduction of input VAT on costs and investments, including VAT paid in other EU countries.
• If turnover exceeds €20,000 in a calendar year, the exemption ends immediately from the transaction that crosses the threshold.
• After deregistering, the waiting period to rejoin is the rest of that calendar year plus the following calendar year.

Who can use KOR, and what turnover counts toward the €20,000 limit?

A freelancer can participate in KOR if the business is established in the Netherlands and the turnover is €20,000 or less per calendar year. The €20,000 test applies to the year of application and the previous calendar year. KOR is intended for entrepreneurs whose goods or services are subject to VAT (btw). If the business goes above €20,000, KOR must stop immediately.

Track turnover on a calendar-year basis (1 January to 31 December) using amounts excluding VAT. A practical approach is to keep a running total after each invoice so the freelancer can see how close the business is to €20,000. When the business has seasonal work, a single late-year invoice can push turnover above €20,000.

KOR applies per entrepreneur, not per activity. When the entrepreneur has multiple VAT subnumbers, the entrepreneur must add the turnover from all subnumbers together to test the €20,000 limit. The entrepreneur cannot apply KOR for one activity and normal VAT for another activity under the same entrepreneur. This matters when the entrepreneur combines B2C and B2B work under one registration.

• Turnover is tested excluding VAT amounts shown on invoices.
• The turnover test is per calendar year, not a rolling 12-month period.
• Include turnover for goods and services that are taxed with VAT, including supplies taxed at a VAT rate (including the 0% rate).
• Combine all turnover from all VAT subnumbers of the entrepreneur when calculating the €20,000 limit.
• Check both years: if the previous calendar year was above €20,000, KOR participation in the current year is not available.
• Keep invoice dates and amounts as proof of the turnover calculation if requested.

How do you apply for KOR, and when can it start?

KOR starts at the earliest on the first day of the next VAT period, usually the next calendar quarter. The Dutch Tax Administration needs processing time of 4 weeks, so the application must be submitted at least 4 weeks before the intended start date. Example: to start KOR on 1 January 2026, the application had to be received by 3 December 2025.

Apply for KOR through the Dutch Tax Administration's online process for entrepreneurs. Choose a start date that is the first day of the next VAT return period (often 1 January, 1 April, 1 July, or 1 October). Submitting the application early matters because the processing time is stated as 4 weeks.

Once KOR starts, the entrepreneur stops charging VAT on new sales from the effective start date. Sales before the start date remain under the normal VAT rules and may still require a VAT return for those earlier periods. If the entrepreneur later wants to stop voluntarily, the stop date must be the first day of a VAT period and should be requested at least 4 weeks in advance.

• Decide the desired start date (typically 1 January, 1 April, 1 July, or 1 October).
• Submit the KOR application at least 4 weeks before that date.
• Keep the confirmation letter that states the final start date granted by the tax authority.
• From the start date, stop adding VAT to invoices and update invoice templates.
• Keep monitoring turnover against the €20,000 cap during the year.
• If the business will trade in other EU countries, check whether EU-KOR is relevant and whether an incidental VAT return is needed.

What must your invoices say when you use KOR?

When using KOR, a freelancer is not required to issue a VAT invoice, but issuing invoices is allowed. If the freelancer issues an invoice, the invoice must not show VAT (no VAT rate and no VAT amount) and must state that the freelancer uses the small businesses scheme (kleineondernemersregeling, KOR). The freelancer must still keep purchase invoices and other records.

Clients often still request invoices for their own administration, even though KOR removes the VAT obligation to invoice. When issuing an invoice under KOR, the invoice should look like a normal invoice except that the VAT section is empty and the invoice text explains that a VAT exemption applies because of KOR.

Even under KOR, cross-border situations can trigger extra VAT obligations. The Dutch Tax Administration notes that KOR participants can still be required to submit an incidental VAT return in specific cases, for example when trading within the EU. For expense documentation that supports income tax deductions, see the [deductible expenses guide](/knowledge-hub/deductible-expenses-freelancers-netherlands).

• Include a clear statement that the KOR exemption applies (do not show a VAT rate).
• Show a VAT amount of €0 and do not show a VAT subtotal or VAT payable line.
• Keep invoice numbering consistent (for example, 2026-001, 2026-002) to support record-keeping.
• Keep purchase invoices, receipts, and contracts because input VAT cannot be reclaimed under KOR but costs can still matter for income tax.
• Do not describe KOR sales as a 0% VAT sale; KOR is an exemption with different rules.
• If a sale requires an incidental VAT return, handle that sale under the relevant VAT rules even if the freelancer uses KOR for domestic sales.

What happens if your turnover goes above €20,000 while you are in KOR?

As soon as turnover goes above €20,000 in a single calendar year, KOR stops immediately. The transaction that pushes turnover above €20,000 is not covered by the VAT exemption, so VAT must be charged on the full amount of that sale and on all later sales. The entrepreneur must deregister from KOR at that moment and return to the normal VAT rules.

After leaving KOR, the entrepreneur must restart the normal VAT administration and meet the standard VAT return and payment deadlines. For quarterly filers in 2026, the deadlines are 30 April 2026 (Q1), 31 July 2026 (Q2), 31 October 2026 (Q3), and 31 January 2027 (Q4).

When should an expat freelancer avoid KOR in 2026?

KOR is often a poor fit when the freelancer expects to reclaim VAT on costs or investments, sells mainly to VAT-registered business customers, or expects turnover to fluctuate around €20,000. KOR can also add complexity for cross-border EU work because an incidental VAT return may still be required. For selling in other EU countries, EU-KOR can apply with an EU-wide turnover cap of €100,000 per year.

KOR is mainly an administrative simplification for VAT. The Dutch Tax Administration highlights that the financial impact depends on whether the entrepreneur usually pays VAT after deducting input VAT, or usually receives VAT back. The customer mix matters: when a customer can deduct VAT, VAT on an invoice does not change the net cost for that customer.

Consider the practical lock-in effect. After deregistering from KOR, the entrepreneur cannot rejoin during the rest of the calendar year of deregistration and the following calendar year. A freelancer who deregisters in February 2026 cannot rejoin until 1 January 2028. This matters for freelancers whose turnover moves above and below €20,000 from year to year.

• The freelancer expects VAT refunds (for example because input VAT on costs is high).
• The freelancer plans a large investment where VAT would be material (for example, €5,000 equipment can include €1,050 VAT).
• Most clients are VAT-registered businesses that can deduct VAT, so KOR rarely creates a pricing advantage.
• The freelancer expects turnover to exceed €20,000 during the year, forcing an immediate exit and re-starting VAT returns.
• The freelancer has EU transactions that trigger an incidental VAT return, reducing the administrative benefit.
• The freelancer may want to use EU-KOR for other EU countries; EU-KOR has an EU-wide turnover limit of €100,000 per calendar year.