When you start a new salon, you mainly want to make clients happy—not get lost in tax rules. Fortunately, there's something that can really help you: the Small Business Scheme (KOR).
What is it?
The KOR is a scheme from the Tax Office that allows you to not charge 21% VAT to your clients. You also don't have to file VAT returns anymore. Nice and straightforward.
Why is that handy?
👉 You're cheaper for consumers
Your clients (like for a haircut or beauty treatment) can't reclaim VAT. So if you don't have to charge VAT, your treatments are simply directly cheaper than those of a colleague who does have to. That's a competitive advantage.
👉 Less administration
No more VAT returns = more time for your clients.
👉 You keep more
You can choose: keep your price the same and retain more profit, or offer a lower price than the rest?
For whom is it smart?
Especially if you work a lot with private clients and have less than €20,000 annual revenue, the KOR is a no-brainer.
Working mainly for business clients (companies)? Then the advantage is smaller, they can reclaim the VAT anyway.
What should you watch out for?
- You can't reclaim VAT on your purchases (like products or equipment).
- If you go over €20,000 revenue? Then the scheme automatically ends.
- You can easily register via the Tax Office website.
In short:
The KOR is ideal for starters who want to keep it simple and be priced just a bit more attractively. Check if you qualify and make a flying start with your salon.
→ Using Bookura? Easily set your VAT settings to 'exempt' in your dashboard. Then everything is immediately arranged correctly.
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Want to learn more about the financial side of your salon? Also read our articles about salon accounting and invoicing for hairdressers.
