Every entrepreneur, regardless of legal form, can choose for the new exemption scheme. This also applies to associations or foundations. Your choice is valid for at least 3 years, or until you exceed the turnover of 20,000 euros. Under the new KOR (Small Businesses Scheme), you do not charge VAT on your supplies. You are also not allowed to deduct VAT on costs (input tax). You are allowed to keep a simplified VAT administration and do not have to file a VAT return.

If you choose to use this exemption scheme, you will need to make a few changes to the settings in your administration.

First of all, you need to ensure that you can create invoices without VAT. To do this, go to Settings > VAT.

In this screen, you will see an overview of the available VAT rates.

In the above screenshot, you can see which rates need to be enabled or disabled. The rates that need to be disabled are marked in red. The rates that need to be enabled are marked in blue.

Disabling a VAT rate can be done by selecting "Status: Hide". You should do this for all the red-marked VAT rates in the screenshot above.

The VAT rate VAT Exempt – for both purchases and sales – will need to be activated. This can be done by changing the status to "Show in Overview". Additionally, no VAT should appear on the invoice.

After these adjustments to the VAT settings, you are almost done. According to the new regulations, the text "Invoice exempt from VAT pursuant to Article 25 of the VAT Act" must be included on your invoices. This text can be added to the existing payment conditions.

As a final step, you need to indicate in the accounting settings that the amount is not VAT liable.

After making these adjustments in your administration, you are ready to invoice according to the new exemption scheme.