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The EU-KOR (Small Business Scheme within the EU) is a VAT exemption for entrepreneurs who do business in multiple EU countries and have an annual turnover of no more than €100,000. With this scheme you do not need to charge VAT or file VAT returns in the EU countries in which you participate.
No VAT to charge to clients in the EU countries where you are registered.
No VAT returns to file in the participating countries.
Lower administrative burden, saving time and costs.
Flexible choice: you can apply for the exemption in one or more EU countries.
The scheme is particularly beneficial for small entrepreneurs and self-employed professionals who work internationally, such as:
Online shops selling within the EU
Service providers with clients in different EU countries
Freelancers carrying out assignments for companies in other EU countries
To qualify, you must meet these 4 conditions:
1️ Your business is established in the Netherlands.
2️ Your turnover per EU country stays below the national turnover threshold (this varies per country).
3️ Your total turnover within the EU does not exceed €100,000 per calendar year.
4️ You are not a participant in the Import Scheme (VAT scheme for e-commerce).
Suppose you sell digital products in France, Belgium and Italy. You choose to participate in the EU-KOR only in Belgium. That means:
You do not need to charge or remit VAT in Belgium.
You pay no VAT to the Belgian tax authority.
You do not need to file a VAT return in Belgium.
In France and Italy you do still need to file VAT returns, unless you also participate in the EU-KOR there.
Note: You may not deduct VAT on costs you incur in the EU-KOR countries.
Want to know how the Dutch KOR works and whether that scheme is a better fit for your business? Read everything about the Small Business Scheme (KOR) 2025.
Do you want to participate in the EU-KOR? Then you must register via the Dutch Tax Authority. You can also submit changes or end your participation if your turnover threshold changes.
Sometimes you can combine the EU-KOR with other VAT schemes, such as the Union Scheme for digital services. This can be useful if you carry out different types of transactions within the EU.
Not sure whether the EU-KOR is beneficial for your business? Sarabel helps you choose the right VAT scheme and takes the administration off your hands. Get in touch with us!