What is the EU-KOR?

  • Sandra Visser-Meijer
  • Q and A
  • 28 November 2024
  • 1 min
  • Managing and growing
  • International

The EU-KOR is the EU version of the Small Businesses Scheme. It is an exemption for VAT in other EU countries. Are you an entrepreneur? And do you do business in other EU countries besides the Netherlands? You can use the EU-KOR as of 1 January 2025.

On 1 January 2025, the Dutch Small Businesses Scheme KOR will change and become more flexible. A new scheme is introduced: the EU-KOR. The EU-KOR allows you to apply for VAT exemption in one or more EU countries.

Conditions for using EU-KOR

Do you want to use the EU-KOR? Then you must meet the following 4 conditions:

  1. Your business is in the Netherlands.
  2. Your total annual turnover in the EU remains below 100,000 euros. This is also called the Union turnover threshold.
  3. Your turnover does not exceed the national turnover limit of the EU country where you do business. Each EU country determines this limit itself. The maximum national turnover limit is €85,000.
  4. You do not participate in the Import Scheme (in Dutch).

Applying for the EU-KOR

The EU-KOR is a voluntary scheme. You decide whether to use the scheme and in which countries. You do not have to participate in the Dutch KOR. From 1 January 2025 you can apply for the EU-KOR with the Netherlands Tax Administration via Mijn Belastingdienst Zakelijk (in Dutch).

Example

Your business in the Netherlands has a total turnover in the EU under 100,000 euro. This includes your turnover in the Netherlands. Occasionally, you sell products or services to customers in Austria and Germany. Would you like to use the EU-KOR in one of these countries? Then first find out what the national turnover limit for these countries is. Does your turnover remain below this limit? Then you can apply for the EU-KOR. This gives you a VAT exemption for Austria and Germany. Or, if you want, you can also only use the EU-KOR in Germany. Then you will only get VAT exemption in Germany.

EU-KOR and VAT

Do you use the EU-KOR? Then this has consequences for VAT in the countries where you use the EU-KOR.

  • You do not charge VAT to your customers in that EU country.
  • You do not file a VAT return in that EU country. And therefore do not need VAT registration in that country.
  • You do not pay VAT to the Netherlands Tax Administration in the country where you do business.
  • You do not deduct VAT in that country.
  • You cannot reclaim VAT on costs incurred for your supplies.
  • You submit a quarterly turnover statement to the Netherlands Tax Administration (in Dutch) every 3 months. This is an overview of your turnover in this period throughout the EU. Make this statement according to the rules and on time.

Other obligations

Also look into administrative obligations in the other EU country. For example, the rules for your invoices and bookkeeping. Check this on the website of the tax authorities in that EU country.

Also of interest