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The Small Business Scheme (KOR) under VAT is to be modernised. The Government has published the draft bill to this effect for internet consultation<\/a>.<\/p>\n The draft bill sets out three reasons for the modernisation. The current KOR is:<\/p>\n In the Explanatory Memorandum, the Government states that over the past 10 years, more than half a million VAT-registered businesses have been added. A significant proportion of these are small businesses. It is not difficult to guess the reason for this. Since a ruling by the European Court of Justice in 2013, private individuals who feed electricity generated by solar panels on the roof of their home into the grid have, after all, been classified as VAT-registered businesses. These people do not let the opportunity to claim a VAT refund on the purchase of the solar panels slip by. In the years following the purchase, they are then not liable for VAT due to the application of the KOR. Most of them then choose to become exemption from administrative obligations<\/a>. The Tax and Customs Administration has now even set up a special form<\/a> for.<\/p>\n In early 2018, the Tax and Customs Administration experienced a further significant delay in issuing VAT numbers. The reason was that people who had purchased solar panels in 2012 were still registering en masse as VAT-registered businesses. The Tax and Customs Administration refused to refund the VAT on the purchase of their solar panels to these people, arguing that they had submitted their claims too late. At the end of 2017, the Supreme Court<\/a> However, the Tax and Customs Administration has been criticised for this. Recently, the State Secretary for Finance<\/a> have indicated that they will comply with this decision.<\/p>\n If you\u2019ve bought solar panels but haven\u2019t yet claimed back the VAT, make sure you do so now!<\/em><\/strong><\/p>\n The new scheme will be known as the Turnover-Related VAT Exemption Scheme (abbreviated to OVOB). The scheme will have a turnover threshold (the exact amount of which has not yet been announced, but which will in any case be higher than \u20ac5,000). Businesses whose turnover remains below this threshold may choose to apply the OVOB. If turnover in a given year subsequently exceeds the threshold, VAT will be payable on the supply of goods or services that causes the threshold to be exceeded, and on all subsequent supplies.<\/p>\n The OVOB will also apply to legal entities. In addition to natural persons, private limited companies, foundations, associations and similar organisations may also make use of it, provided they are established in the Netherlands.<\/p>\n Entrepreneurs must opt for the OVOB scheme and are then bound by that choice for at least three years. This is set out in a decision to be issued by the Tax and Customs Administration. The consequence is that no VAT needs to be paid, but nor can any VAT be reclaimed. Naturally, an entrepreneur who opts for the OVOB is not required to comply with the administrative obligations relating to VAT.<\/p>\n For the purposes of the turnover threshold, turnover subject to VAT at the standard rate (21%), the reduced rate (6%) and the 0% rate is taken into account. However, VAT-exempt turnover is not included, except:<\/p>\n The intention is for the OVOB to come into force on 1 January 2020. Most business owners who are currently exempt from administrative obligations will be able to remain so under the OVOB. Business owners whose VAT balance exceeds \u20ac1,345 cannot currently be exempt from administrative obligations, but may be able to opt for the OVOB in due course.<\/p>\n Businesses that are currently unable to apply the KOR scheme, but whose turnover remains below the threshold, can reduce their administrative burden through the OVOB. This applies, for example, to private limited companies, foundations and associations with limited turnover.<\/p>\n There is, however, a catch when it comes to tax: the reassessment scheme. This could mean that, if you opt for the OVOB, you may have to repay part of the VAT you claimed in the past.<\/p>\n Let\u2019s see what the final arrangement looks like first.<\/p>","protected":false},"excerpt":{"rendered":" De Kleine OndernemersRegeling (KOR) in de BTW wordt gemoderniseerd. Het Kabinet heeft het conceptwetsvoorstel daartoe vrijgegeven voor internetconsultatie. Waarom moderniseren? Het conceptwetsvoorstel noemt drie redenen voor de modernisering. De huidige KOR is: administratief te bewerkelijk (zowel voor belastingplichtigen als voor de Belastingdienst); niet rechtsvorm neutraal (de KOR geldt onder andere niet voor BV’s, stichtingen en […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-626","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=626"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/626\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why modernise?<\/h4>\n
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The importance of the KOR has increased significantly<\/h4>\n
The new OVOB<\/h4>\n
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Effective 1 January 2020<\/h4>\n