As an entrepreneur, you face the challenge of keeping up with ever-changing tax rules. From 1 January 2025, sweeping changes to the Small Business Act (KOR) and the One Stop Shop (OSS) system are imminent. These changes are intended to modernise the VAT system and make it simpler for entrepreneurs, but they also bring new responsibilities. In this blog, we explain what is changing and how you can anticipate them.
What is the KOR and who is it for?
The Small Business Scheme is a simplification scheme for entrepreneurs in the Netherlands. If your turnover remains below a certain threshold (€20,000 in 2024), you can choose not to charge and remit VAT. This means less administrative burden, but also that you cannot reclaim VAT on business expenses.
What will change in the KOR from 1 January 2025?
From 2025, the following changes will be implemented:
- Increase in turnover limit:
The turnover limit for the KOR will be increased to €25,000 per calendar year. This will allow more small business owners to take advantage of the scheme. The increase is in line with inflation adjustments and the growth of small businesses. - Extension to EU sales:
Until now, the KOR applied only to Dutch entrepreneurs making deliveries in the Netherlands. From 2025, sales to consumers in other EU countries may also be included within the turnover limit. This will make the scheme more interesting for entrepreneurs who, for example, supply customers abroad via online shops. - Adjustments for periodic review:
Instead of annual review, the turnover limit will now be assessed quarterly. This can lead to more flexibility, but also means you need to accurately track your quarterly turnover.
What is the One Stop Shop (OSS)?
The OSS scheme is designed for entrepreneurs supplying goods and digital services to consumers in other EU countries. This scheme allows you to handle VAT in one declaration through the Dutch Tax Authorities, instead of having to register separately in each country. This saves time and administrative costs.
Changes to the OSS scheme from 1 January 2025
The OSS scheme is being further optimised to make VAT processing more efficient:
- Mandatory OSS registration for online shops:
For e-commerce businesses with a turnover above €10 ,000 in cross-border sales, OSS registration will become mandatory. This means entrepreneurs can no longer evade the administrative burden of separate registrations. - Harmonisation of threshold amounts within the EU:
All EU countries will use the same threshold amounts for cross-border sales from 2025. This will reduce confusion and make VAT planning easier. - Extension of reporting requirements:
More detailed reporting is required in the OSS declaration, for example on VAT rates by country and specific product categories. This requires proper accounting and clear product registration.
How can you prepare for these changes?
- Check your turnover threshold:
Monitor all your turnover now and calculate whether the increase in the KOR threshold will impact your business. - Review your administration system:
The extension of OSS requirements means your records need to be up-to-date. Consider a modern accounting system that can automate VAT reporting. - Seek advice:
The changes can seem complex. A tax adviser or specialist in VAT rules can help you decide which scheme best suits your business.
Conclusion: opportunities and challenges in 2025
The changes to the KOR and OSS regulations from 1 January 2025 offer opportunities for small entrepreneurs and e-commerce businesses, but also bring additional responsibilities. By preparing in time, you can take advantage of the benefits and avoid any pitfalls. Whether you are a small local entrepreneur or run a cross-border webshop, these changes can positively affect the way you work.
Stay tuned and make 2025 a year to further optimise your business!
