This fact sheet is also available in pdf-format.
As part of the efforts to tackle the financial impact of the coronavirus crisis, emergency helpdesks have been set up for business owners. At these helpdesks, business owners can apply to the government for a contribution towards their fixed costs.
TOGS and TVL
The following schemes are concerned.
- Financial assistance for business owners in affected sectors (TOGS), with the grant period running from 16 March 2020 to 15 June 2020 inclusive.
This scheme was available up to and including 26 June 2020 is subject to application and is not discussed in further detail in this factsheet.
- Fixed Costs Allowance (TVL), comprising four funding periods:
- June, July, August and September 2020 (TVL-1).
- October, November and December 2020 (hereinafter: TVL-2 also known as TVL Q4);
- January, February and March 2021 (hereinafter: TVL-3; also referred to as TVL Q1);
- April, May and June 2021 (TVL-4).
The official text of TVL-4 is not yet available. Not all of the announced amendments have yet been incorporated into the current official text of TVL-3.
Request
Applications for the schemes must be submitted separately for each individual period. To submit an application, the business owner must hold an e-herkenning Level 1 (or higher) certificate. Applications can also be made using DigiD, but this must be the DigiD of the person registered with the Chamber of Commerce as the owner or director of the business for which the application is being made.
Application period
Applications for TVL must be submitted to the Netherlands Enterprise Agency (rvo.nl):
- TVL-1 and TVL-2: closed
- TVL-3: dated 15 February 2021 (12:00) up to and including 18 May 2021 (5.00 pm)[1];
- TVL-4: expected in the second half of May 2021.
Advance payment
On the basis of the application, an advance payment of 80% of the expected grant amount will be made.
Approval of grant
The applicant must submit an application for the grant to be awarded. That application must be submitted:
- TVL-1: before 1 June 2021[2];
- TVL-2: before 1 July 2021;
- TVL-3: before 1 October 2021.
The grant is then finalised within 16 weeks of the application. This finalisation of the grant may result in an additional payment or a repayment.
The TVL-2 adoption process has begun
The TVL-2 assessment process began on 18 March 2021. The intention is for RVO to have sent an email to 90% of the TVL-2 applicants by 25 March 2021, containing a pre-filled assessment request.
Business owners who expect to receive a back payment of their TVL-2 grant should submit the information required for final assessment as soon as possible.
This applies in particular to those business owners who are entitled to the supplement (see also below):
- places to eat and drink;
- retail stock.
These surcharges are not included in the advance payment, but are added to the grant by RVO when the accounts are settled (no separate application is required for this).
RVO expects that correct and complete applications for TVL-2 approval will be processed within 2 to 3 weeks.
Maximum grant
The grant amounts to (excluding the surcharge for food and drink outlets and stock storage for closed retail outlets) a maximum of:
- TVL-1: € 000;
- TVL-2: € 90.000;
- TVL-3: € 550.000, for non-SME companies: € 600.000;
- TVL-4: € 550.000, for non-SME companies: € 600.000
An application for TVL is rejected insofar as[3] the total amount of aid received by an undertaking, after application of the TVL, exceeds:
- € 1.800.000;
- fishing and aquaculture businesses: € 270.000;
- agricultural businesses: € 225.000.
The increases for TVL-3 and TVL-4 (already included in the amounts mentioned above) are still subject to approval by the European Commission. These changes are expected to be implemented in mid-March.
Level of subsidy
The amount of the grant is calculated using the following formula:
A × B × C × D
A = turnover during the reference period in euros.
B = the loss of turnover, expressed as whole percentages.
C = the ratio of fixed costs to turnover for an average company (this factor is set out for each SBI code in an annex to the scheme).
D = subsidy percentage (see below)
Subsidy rate
The subsidy rate is:
TVL-1: 50%
TVL-2: as shown in the table below:
| Loss of turnover | Grant% | Loss of turnover | Grant% | |
| 30% | 50% | 70% | 61,43% | |
| 35% | 51,43% | 75% | 62,86% | |
| 40% | 52,86% | 80% | 64,29% | |
| 45% | 54,29% | 85% | 65,71% | |
| 50% | 55,72% | 90% | 67,19% | |
| 55% | 57,14% | 95% | 68,57% | |
| 60% | 58,57% | 100% | 70% | |
| 65% | 60% |
TVL 3: 85%[4]
TVL-4: 100% (subject to EC approval)
Minimum grant amount
If the result of the formula is less than:
- TVL-1: €1,000
- TVL-2: €750;
- TVL-3: €750;
- TVL-4: not yet known;
or where the company was first entered in the commercial register after 29 February 2020;
the grant is set at € 1.000, respectively € 750.
CAUTION: The business owner must, however, meet all the conditions set by the TVL (including a loss of turnover of 30% or more).
One-off surcharge for food and drink outlets
TVL-2 provides for a one-off grant for businesses with food or drink facilities. This allowance covers the costs of the perishable stock that these businesses have been left with, as well as the costs incurred in generating turnover during the winter whilst complying with the rules of conduct.
This top-up applies to businesses with the following SBI codes: 56.10.1, 56.10.2, 56.29 and 56.30. There is no need to apply for the top-up separately; it will be added automatically by RVO to the TVL-2 grant. Businesses that do not apply for the TVL-2 grant will not receive the top-up.
The surcharge is calculated as follows:
A * B * 5.6% * D
A = turnover during the reference period in euros.
B = the loss of turnover, expressed as whole percentages.
D = subsidy percentage.
The surcharge is capped at:
- If the business was established on or after 29 February 2020: € 101;
- for other business owners: € 20.160 (This maximum is in addition to the TVL-2 maximum of €90,000).
Storage, Stock, Closed Retail Outlets
Business owners in the retail sector, which has been closed due to the lockdown, will receive the same allowance for losses relating to their stock.
This grant is awarded to businesses with SBI code 47 (retail trade), but, of course, only to those sub-categories that have been closed as a result of the lockdown.
The top-up does not need to be applied for separately; it is automatically added by RVO to the grant under TVL-2 and TVL-3. Business owners who do not apply for TVL-2 and/or TVL-3 will not receive the top-up.
This surcharge amounts to:
A * B * 5.6% * D
The surcharge amounts to a maximum of (in addition to the maximum grant amounts stated here):
- TVL-2: €20,160;
- TVL-3: €300,000 (the increase is still subject to approval by the European Commission).
A = turnover during the reference period in euros.
B = the loss of turnover, expressed as whole percentages.
D = subsidy percentage.
Events module
A module has been added to TVL-2 for business owners who meet a number of conditions. This events module was open from 18 February 2021 to 18 March 2021 inclusive.
The company must:
- during the 2019 events season, 50% (or more) of their performances were delivered in connection with an event held during that season;
- who received a TVL grant for the months of June to September 2020 inclusive;
- but are not eligible for the TVL grant for the months of October to December 2020 inclusive;
- were first entered in the commercial register before 14 September 2019.
An event is an organised, one-off occasion open to the public, attended by a group of people who are present at or moving within a venue or site during a specific period of time.
The events module for the first quarter of 2021 (TVL-3) will open on 26 April 2021 to 26 May 2021 inclusive. The same conditions apply as for the events module linked to TVL-2 (see above), provided that no TVL grant was received during the period January, February and March 2021.
The grant from the events module amounts to (per application period):
- 33.3% of the grant received by the business under TVL-1 (June, July, August and September 2020);
- But at least €750 (for the first application period) and €1,500 (for the second application period).
Businesses with fixed costs of more than €1,500 but less than €3,000 are eligible for TVL-3, but also for the events module. The grant from TVL-3 will be deducted from the grant from the events module.
REMEMBER: unlike the applications for the hospitality and retail sectors, applications for the events modules are NOT submitted as part of a standard application for TVL funding!
Conditions
The TVL grant is available to SMEs (with up to 250 employees):
- where the loss of turnover amounts to 30% or more;
- the result of which is A * C;
is at least:
- TVL-1: €000;
- TVL-2: €3,000;
- TVL-3: €3,000;
- TVL-4: €3,000;
PLEASE NOTE: the actual fixed costs are not taken into account!
- which were entered in the commercial register on 15 March 2020[5];
- whose main or secondary activity is entered in the commercial register under a designated SBI code;
This condition does not apply to TVL-2, TVL-3 and TVL-4, as these grant periods are open to (virtually) ALL sectors[6];
- at least one of whose premises has an address other than the owner’s home address or is physically separate from the owner’s home (this does not apply to catering businesses; however, the business owner must rent, lease or own at least one catering establishment).
The TVL-3 and TVL-4 schemes will also be made available to non-SME businesses. These are companies with more than 250 employees.
Loss of turnover
The loss of turnover is calculated using the following formula:
(turnover for the reference period – turnover for the subsidy period)/turnover for the reference period
Under TVL-1, the loss of turnover is expressed as whole percentages. Under TVL-2/3/4, non-rounded percentages are used.
Turnover for the reference period:
- TVL-1: (turnover 2e calendar quarter 2019 /3) + turnover 3e calendar quarter of 2019;
- TVL-2: turnover 4e calendar quarter of 2019;
- TVL-3: turnover 1e calendar quarter of 2019;
- TVL-4: turnover 2e calendar quarter of 2019.
Turnover during the subsidy period:
- TVL-1: (turnover 2e calendar quarter 2020/3) + turnover 3e calendar quarter of 2020;
- TVL-2: turnover 4e calendar quarter of 2020;
- TVL-3: turnover 1e calendar quarter of 2021;
- TVL-4: turnover 2e calendar quarter of 2021.
Government grants, allowances or other forms of support relating to the fight against the coronavirus crisis do not count as turnover for the purposes of the TVL (for example, the NOW grant).
They are, however, taken into account when determining whether the total amount of subsidies exceeds the maximum amounts of state aid that may be granted (the limits of €1,800,000, €270,000 and €225,000 referred to above).
Evidence of loss of turnover
If the applicant company pays VAT on its total turnover and submits VAT returns on a monthly or quarterly basis, proof is provided by means of copies of the VAT returns.
Other companies provide evidence in the form of information from their accounts.
If the applicant operates a village hall, community centre or neighbourhood centre that offers catering services, only the loss of turnover relating to catering and venue hire is taken into account under TVL-1.
Manufacturing companies with a retail outlet may, under TVL-1, only take into account the loss of turnover in that retail outlet.
Under TVL-1, business owners applying for the grant for a secondary activity may only take into account the turnover generated by that secondary activity.
The scheme provides for the Tax and Customs Administration to supply RVO with information that can be used to verify the data submitted by businesses (for example, in the form of VAT returns).
Fixed costs
The grant is intended to cover the company’s fixed costs. The level of fixed costs is determined per SBI code on the basis of an “average company”. In TVL-1, this was done at the level of the 2-digit SBI code (further breakdown is not possible). In TVL-2/3/4, the (flat-rate) decline in turnover is set per main group.
The amount of the grant is therefore unrelated to the amount of fixed costs that the business actually pays during the grant period. Entrepreneurs are therefore not required to demonstrate the actual amount of their fixed costs. They are also free to reduce their fixed costs as much as possible without this resulting in a lower grant amount under the TVL scheme.
The factor of 0.5, which forms part of the formula for calculating the grant under TVL-1, means that the scheme is intended to cover up to half of the company’s fixed costs.
Under TVL-3 and TVL-4, the D factor is increased to 85%. Under TVL-2, the scale shown above applies.
Obligations
The grant recipient is subject to the following obligations:
- keeping records in such a way that it can be readily and clearly established at any time that the conditions for the grant are being met;
- These records are kept until 10 years retained after the date of the grant award decision (which is considerably longer than the standard retention period of 7 years);
- to cooperate, for a period of five years, in an evaluation of the effectiveness and impact of the grant awarded;
- If the company is also involved in the processing and marketing of agricultural products, it does not pass on the subsidy to primary producers.
The purpose of this note is to outline a scheme. For the sake of readability, matters have therefore been simplified. VWG is therefore not liable for the consequences of actions taken or not taken as a result of this memorandum.
[1] This deadline was originally 30 April 2021, but has been extended by just over two weeks.
[2] This deadline was originally 1 April 2021, but has been extended by two months.
[3] Under TVL-1 and TVL-2, the grant is refused in full if the maximum amounts are exceeded. Under TVL-3, the grant is refused only in respect of the amount by which the limit has been exceeded.
[4] For the time being, the advance payments have been made on the basis of the old subsidy rate. The increase to 85% is likely to be paid retrospectively at the end of April.
[5] A separate scheme has been announced for entrepreneurs who set up their businesses between 1 January 2020 and 30 June 2020 inclusive. This scheme will be based as far as possible on the TVL, but will be structured as a standalone scheme.
[6] REMEMBER: the following sectors are not eligible for TVL-2/-3/-4: financial institutions (SBI 64, 65 and 66), public authorities and extraterritorial organisations, sectors 97 and 98 (linked to households), holding companies and group services (SBI 70.1), and publicly funded schools (SBI 85).
Businesses with SBI codes 64.2, 64.30.3 and 70.1 are still eligible for TVL if they are also registered with an activity listed in an annex to the scheme (to be published).