Turnover Tax Implementation Decree up for amendment

The upcoming amendment – effective 01 January 2020 – of the Small Businesses Scheme (Dutch acronym: “KOR”) forming part of the turnover tax regime is necessitating changes being made to the Turnover Tax Implementation Decree 1968. The revised Scheme is to provide inter alia for a system of sales-related exemption in replacement of the current arrangement of declining reduction of outstanding turnover tax. Any small business owner will upon request be admitted to the revised Small Businesses Scheme – no matter the legal status of his or her enterprise – on condition that he or she should meet the following two requirements:

• the business (owner) should be Dutch-based, and
• the business’ aggregate sales for the calendar year should not exceed 20,000 euros.

The application form – whose deadline for filing has been fixed at 20 November 2019 in order for the applicant to secure admission, for a term of at least three years, to the revised Small Businesses Scheme from 01 January 2020 onwards – is available on the Tax and Customs Administration web site (dutch).

Implementation Decree

The forthcoming amendment of the Turnover Tax Implementation Decree 1968 will release small business owners from the obligation to rectify past capital goods-related turnover tax deductions where the value of the correction for the year as a whole turns out at less than 500 euros. Moreover business owners who rely on the margin scheme in determining their taxed sales may in future do so too where it concerns the (application of the) Small Businesses Scheme, so that the sales maximum for application of the (revised) Scheme will boil down to a profit margin of 20,000 euros at the outside.

The term for resignation from the Small Business Scheme is identical to that for application, at four weeks (this being the amount of processing time the Tax and Customs Administration needs).

Dutch version: Wijziging uitvoeringsbeschikking omzetbelasting