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KOR Small entrepreneurs discount in the VAT

In case you are regarded a small entrepreneur in the VAT, you do not actually need to pay the (full) amount of VAT. When are you regarded a small entrepreneur and how to apply for this discount? Read more about the KOR small entrepreneurs.

A small VAT entrepreneur is a VAT entrepreneur that needs to pay overall in a year less than € 1.883 in VAT. In this respect only persons operating via a so called eenmanszaak (one man company) can qualify for this rule. No BV companies or other limited liability companies.

Example calculation. You have to pay overall in the year 2014 € 1.000 in VAT. Then the calculation is € 1.883 minus € 1.000 is € 883. The € 883 is multiplies by 2,5, which is € 2.207. € 2.207 is more than € 1.000 hence no VAT is to be paid.

Another example. You have to pay overall in the year € 1.500 in VAT. Then the calculation is € 1.883 minus € 1.500 is € 383. The € 383 is multiplied by 2,5, which is € 958. Then you claim the KOR (small business discount) for the amount of € 958, resulting in only € 542 VAT to be paid.

Is the discount money in your pocket. No, the discount resulting from the KOR is regarded part of your result. In second example you see a discount of € 958. This amount is added to the company’s result. Paying tax over € 958 is always less than paying the actual € 958 hence this is an advantage.

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