Dutch State Secretary Vijlbrief of Finance sees no reason for an adjustment of the new Dutch Small Business Scheme (KOR). The State Secretary answers that following an article about the smaller number of registrations for the new KOR, which started on 1 January 2020. Vijlbrief also finds it too early to conclude that the number of small businesses using the new scheme is disappointing.
Under the new Dutch SME Scheme, businesses with a turnover of less than EUR 20k per year can opt-out of VAT, i.e. they don’t have to charge VAT, and can also not deduct any input VAT. Once they go over this threshold, the normal VAT rules apply.