Understanding the Klein Ondernemersregeling BTW on Invoices: A Detailed Guide
As a small business owner, it’s crucial to understand the intricacies of tax regulations, especially when it comes to Value Added Tax (VAT) in the Netherlands. One such regulation that can significantly impact your financials is the Klein Ondernemersregeling (Small Entrepreneur Scheme), commonly referred to as the KOR. This article will delve into how to mention the KOR on your invoices, ensuring compliance and clarity for both you and your clients.
What is the Klein Ondernemersregeling (KOR)?
The KOR is a tax scheme designed for small businesses in the Netherlands. Under this scheme, eligible businesses can opt to pay a fixed percentage of their turnover instead of the standard VAT rate. This can be a significant financial benefit, especially for businesses with low turnover.
Eligibility Criteria for the KOR
Not all small businesses are eligible for the KOR. To qualify, your business must meet the following criteria:
| Criteria | Description |
|---|---|
| Turnover | Your annual turnover must not exceed 鈧?0,000 for goods and services, or 鈧?0,000 for goods only. |
| Location | Your business must be based in the Netherlands. |
| Registration | You must be registered as an entrepreneur with the Dutch Chamber of Commerce (KVK). |
How to Mention the KOR on Your Invoices
Mentioning the KOR on your invoices is essential for transparency and compliance. Here’s how to do it:
1. Include the KOR Reference
At the top of your invoice, include the KOR reference number. This is a unique identifier provided by the Dutch Tax Administration. It looks something like this: “KOR/20.000.000.000.” This ensures that your clients are aware that you are registered under the KOR scheme.
2. Specify the KOR Rate
Next, clearly state the KOR rate on your invoice. This is typically 6% for goods and services, or 0% for goods only. For example, “VAT rate: 6% (KOR).” This helps your clients understand the VAT rate applied to their purchase.
3. Highlight the KOR Discount
Since the KOR allows you to pay a lower VAT rate, it’s important to highlight this discount on your invoice. You can do this by stating, “Discount for KOR: -6%.” This ensures that your clients are aware of the reduced VAT rate they are benefiting from.
4. Provide Contact Information
Include your contact information, such as your name, address, and phone number. This makes it easier for your clients to reach out with any questions or concerns regarding the KOR.
Example of a KOR-Inclusive Invoice
Here’s an example of how your invoice might look with the KOR information included:
| Item | Quantity | Unit Price | Total |
|---|---|---|---|
| Product A | 10 | 鈧?0.00 | 鈧?00.00 |
| VAT (KOR) | 鈧?.00 | ||
| Total (including VAT) | 鈧?06.00 |
Invoice Number: 1234567890
KOR/20.000.000.000
VAT rate: 6% (KOR)
Discount for KOR: -6%
Contact: [Your Name], [Your Address], [Phone Number]