Last updated Saturday, July 8th 2023, at 10:17am CET
As a follow-up to the update that I wrote on May 13th it's probably good to further clarify, that the tax exemption for Connected Life Today isn't indefinite but dependent on whether or not my turnover exceeds certain thresholds. If you've read the entire article you will have already seen the information on this link Dutch small business scheme (KOR), but I'll explain it further.
The tax exemption (i.e. 0% charge for VAT when you book a session) stands as long as my turnover in The Netherlands, or outside of the EU, or The Netherlands combined with the countries outside of the EU doesn't exceed EUR 20.000 annually. If that threshold is exceeded in a calendar year, the tax exemption is no longer applicable and I'll have to start charging the Dutch VAT rate of 21%. For example: even if I have no turnover in The Netherlands at all, but let's say my sales just in Dubai exceed EUR 20.000, I'll have to start charging the 21% VAT to customers in The Netherlands and every other country outside of the EU.
The turnover threshold for EU countries is EUR 10.000. So if my turnover in countries outside of The Netherlands, but within the EU exceeds EUR 10.000, I'll have to start charging the local VAT rate to customers in every country within the EU, but not to customers in The Netherlands and outside the EU. The turnover from EU countries outside of The Netherlands, will not be counted for the EUR 20.000 threshold for The Netherlands within the Dutch Small Business scheme.
As a Connected Life Today customer you don't have to worry about these thresholds and tax rules at all, and I'll definitely publish an announcement if and when there are changes to Connected Life Today's VAT exemption.
For now enjoy your tax free shopping! :-)
Randy
Update Saturday, May 13th 2023, at 19:14pm: Dutch small business scheme awarded to Connected Life Today!
On May 9th, 2023 Connected Life Today was found to be eligible for the Dutch small business scheme, which means that from July 1st, 2023 onwards Connected Life Today will be tax free!
Posted Tuesday, April 18th 2023, at 06:46am - Application for the Dutch small business scheme (KOR) sent in.
As mentioned in the announcement for Connected Life Today I also intended to apply for the Dutch small business scheme (KOR), and I just put my application in the mailbox. Yes, mailbox as in snail mailbox, as nearly every single tax service is now digitized except this one. Anyhoe, now let's wait and see how long it takes the tax authorities to review (and approve!) my application.
As I'm launching my business while also being employed elsewhere part-time, I want to give a special thanks to my boss/buddy :) for allowing me to use his printer at work to print out the form. He was also fine with me taking some time off early April to finish the work on my webshop so all in all, best boss/buddy everrrr. :-)
I will of course keep you posted as to whether or not I got the tax exemption for Connected Life Today, which would be great for me as a small business owner and also for you as a customer.
Bonus!: if I get the VAT exemption and you already booked a session before then, I will give you a refund for the tax that was charged.
Have a nice day!
Randy
