Entrepreneurs / natural persons or combinations of natural persons established in the Netherlands keeping adequate records and annually not paying more than € 1.883 VAT can apply the Dutch Small Enterprises arrangement, called KOR (Kleine ondernemers regeling). This arrangement contains a VAT-reduction scheme. In case € 1.345 VAT or less is due per year, even an exemption from administrative obligations can be requested. Unless this exemption is asked, the small entrepreneur applying the KOR is entitled to deduct VAT on costs and investments.
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