The small business scheme, kleine ondernemersregeling (KOR) in Dutch, has changed a lot since the 1st of January 2020. The small business scheme is part of the Dutch turnover tax regime. To be viewed as a small business owner, and be eligible to join the scheme, your annual turnover tax must be below €1,883. Before January 2020 entrepreneurs benefited from a tax reduction. This tax reduction has been replaced by a VAT exemption. This could save you a lot of administrative work, but there’s downsides too.