EU Small Business Scheme (EU-KOR)

Are you an entrepreneur doing business in other EU countries? Is your total turnover for the calendar year below EUR 100,000? Then you may participate in the EU Small Business Scheme (EU-KOR) from 1 January 2025. This is a VAT exemption for entrepreneurs doing business within the EU.

With EU-KOR, you do not charge VAT to your clients in other EU countries. You also do not deduct VAT there. And you do not pay VAT to the tax authorities of the country where you do business. However, you must submit a quarterly turnover report.

### Conditions for Participation in EU-KOR

To participate in EU-KOR, 4 conditions must be met:

1. You are based in the Netherlands.
2. Your turnover does not exceed the national turnover limit of the respective EU country.
3. Your total EU turnover does not exceed 100,000 euros per calendar year.
4. You do not import goods (more information).

### Turnover That Counts for EU-KOR

• Turnover from goods and services subject to VAT in the Netherlands
• Turnover from goods and services subject to VAT from another EU country

### Turnover That Does Not Count for EU-KOR

• VAT on private use of goods and services
• Supply of investment goods
• Domestic services with VAT reverse-charged to the client
• Services outside the EU
• Intra-EU acquisitions
• Certain exempt turnover (e.g., healthcare)

### Turnover in euros

If another EU country uses a different currency, convert the turnover to euros. Use the exchange rate on the first day of the calendar year. This exchange rate is published by the European Central Bank.