How to use the EU small businesses scheme for your online shop

The European small businesses scheme (EU-KOR) is a VAT exemption. There are conditions attached to using the EU-KOR. You must also take into account 2 separate turnover limits for your online shop. Your turnover cannot exceed certain amounts because the EU-KOR is intended for small businesses.

Turnover limits

1. Your total annual turnover in the EU must stay below €100,000. This includes your turnover in the Netherlands. Does your turnover exceed €100,000? Then you can no longer use the EU-KOR, and you must deregister from the scheme.
2. Your turnover in the country for which you apply for the EU-KOR must stay below the maximum turnover limit of that country. Each EU country sets its own national turnover limit. This differs per country and is a maximum of €85,000. Countries deal with it differently if you go over this limit.

Distance sales

Apart from the EU-KOR, there is another simplified scheme for sales to customers without a VAT identification number abroad. These are known as EU intra-community distance sales. 

The EU has one common threshold amount of €10,000 for distance sales. This amount counts for all intra-EU distance sales of goods and digital services to consumers in the EU. Your turnover in the Netherlands does not count here. Do you sell, deliver, and ship products from the Netherlands to consumers in other EU Member States? And does the total amount per year remain below the threshold? Then as a Dutch online shop, you can simply charge Dutch VAT.

Is the total amount of your sales in EU member states per year more than €10,000? Then you usually charge the VAT of the EU country where your products go. You must register for VAT in that country. You invoice your foreign customers the VAT rate of their country. Or you can choose the EU-KOR.

These examples explain how the EU-KOR works in combination with the threshold amount.

Example 1: sales in the EU up to €10,000 

Your online shop sells to customers in the Netherlands and France. In 2025, you sell products worth €8,000 to Dutch customers. For the EU¬-KOR, this amount counts as Dutch sales. You also sell products worth €6,000 to French customers, this counts as foreign sales.

With your foreign sales, you stay below the threshold amount of €10,000. You are therefore allowed to charge Dutch VAT on your French turnover. Because you are allowed to charge Dutch VAT, the €6,000 counts as Dutch turnover for the EU-KOR. Your Dutch turnover is then €14,000. This keeps you below the turnover limit of €20,000 for the small businesses scheme (KOR). Are you already using the KOR? Then you can continue to use it. Using the EU-KOR is not necessary in this example.

Example 2: sales in the EU over €10,000 

You have an online shop in the Netherlands and in 2025 you will sell €15,000 worth of goods to customers in Belgium. This puts you above the turnover limit of €10,000 for distance sales. You charge your customers in Belgium the Belgian VAT rate.

You can declare this Belgian VAT in 3 ways:

1. You apply for a Belgian VAT number and declare VAT there.
2. You declare the VAT via the Union scheme in the Netherlands.
3. You use the EU-KOR in Belgium. With €15,000 euros in sales, you stay below Belgium's national turnover limit which is €25,000 euros. You register for the EU-KOR in Belgium via Mijn Belastingdienst Zakelijk (in Dutch).

Your choice

Each method of declaration has advantages and disadvantages. It depends on your situation. For example, the amount of your turnover. Consult your accountant or bookkeeper about the best option for your company.