KOR Turnover Explained: What Counts Towards the €20,000 Limit?

In my previous article, KOR: Rules, Requirements and VAT Implications, I explained how the Dutch Small Businesses Scheme (KOR) works and who can apply.

A common follow-up question is:

What exactly counts towards the €20,000 turnover limit?

The answer is important because the KOR threshold is not always based on your total business revenue. Some revenue counts towards the limit, while other revenue does not.

Which Years Count?

To qualify for the KOR, your qualifying turnover must not exceed €20,000 in both:

• the calendar year in which you want to participate; and
• the previous calendar year.

If either year exceeds the threshold, you may not qualify for the KOR.

Revenue That Counts Towards the KOR Limit

As a rule of thumb:

Revenue generally counts towards the KOR limit if Dutch VAT would normally apply.

This includes revenue subject to:

• 21% VAT
• 9% VAT
• 0% VAT

Some VAT-exempt activities also count, including:

• certain transactions relating to buildings and land
• financial services
• insurance services

Revenue That Does Not Count Towards the KOR Limit

Some revenue is specifically excluded.

Examples include:

• certain medical services
• the work of writers, journalists and composers

In addition, services supplied to VAT-registered businesses or entrepreneurs in other EU countries generally do not count towards the Dutch KOR threshold because these services are often taxed in the customer’s country under the reverse-charge rules.

The sale of business assets that have been used in the business, such as equipment, machinery or a business vehicle, generally does not count towards the threshold either.

Example: Dutch Coach with International Clients

A Dutch business coach earns:

Revenue source	Amount
Dutch clients	€8,000
Belgian private clients*	€7,000
German VAT-registered companies	€9,000

*Assuming Dutch VAT would normally apply.

KOR turnover:

€8,000 + €7,000 = €15,000

The German B2B revenue generally does not count towards the Dutch KOR turnover limit. Although the business generated €24,000 in total revenue, its qualifying KOR turnover is €15,000.

What About Webshops and Etsy Sellers?

If you sell goods to customers in other EU countries, additional VAT and OSS rules may apply. The examples in this article focus primarily on service-based businesses. If you operate a webshop or sell products internationally, review the cross-border VAT rules before determining your KOR turnover.

Key Takeaway

Before deciding whether you qualify for the KOR, first determine your qualifying KOR turnover.

Remember:

✅ Most revenue normally subject to Dutch VAT counts.

✅ Certain exempt property, financial and insurance-related activities also count.

❌ Certain exempt activities, such as some medical services and the work of writers and journalists, generally do not count.

❌ Services supplied to VAT-registered businesses or entrepreneurs in other EU countries generally do not count.

❌ The sale of business assets previously used in the business generally does not count.

And don’t forget:

Both the current year and the previous year must remain below €20,000.

Next Step

Determining that your turnover qualifies for the KOR does not mean that all VAT obligations disappear.

In the next article, we’ll look at KOR and International VAT: The Obligations That Don’t Disappear.

Frequently Asked Questions

General information, not tax advice. I am not a tax adviser (belastingadviseur); for your own situation, consider asking a qualified one.