The Small Business Scheme (KOR) is a VAT exemption. along for more information.
The small business scheme (KOR) was created by the tax authorities to help starting entrepreneurs. It is an exemption for the VAT that you have to pay. You can make use of the KOR if you are established in the Netherlands and have no more than € 20,000 turnover in 1 calendar year.
Below, a table explains the situation of the KOR.
| No KOR | KOR | |
| Basis | € 16,00 | € 16,00 |
| VAT (received) | € 3,36 | € 0,00 |
| Vat (pay) | € -3,36 | € 0,00 |
| Final amount | € 16,00 | € 16,00 |
1. Participate in the KOR. If you do participate in the KOR (right-hand side picture), you will not receive any VAT and you do not have to pay it. If you do participate in the KOR, we will invoice the client €16 per hour on your behalf, the VAT percentage is 0%.
2. Not participating in the KOR. When you do not participate in the KOR (left-hand side picture), you receive 21% VAT, but you also have to pay this to the tax authorities. In that case, we invoice €19.36 per hour on your behalf to the client and the client can claim €3.36 (21%) back from the tax authorities, because that is VAT. In both cases, you keep €16 per hour.
For Level.works, it makes no difference whether you participate in the KOR or not. For you, it can make a difference whether you participate in the KOR or not. For advice on your personal situation, we recommend that you contact the tax authorities (Belastingdienst). You can do so via this link below.