No KOR without registration

A small entrepreneur does not file a VAT return. Therefore, the inspector imposes an additional tax assessment for VAT, along with fines for not paying and not filing a return. The entrepreneur objects, after which the assessment is reduced to zero and the fine for not paying is canceled. However, the fine for not filing a return remains.

The entrepreneur appeals against this fine, claiming that she participated in the small business scheme (KOR) and therefore did not have to file a VAT return. She believes the fine is unjustified.

The court rules that the inspector has demonstrated that the entrepreneur should have filed a VAT return and did not do so. The KOR is only applied after a request from the taxpayer, and there is no request known to the Tax Authorities. Moreover, the inspector has submitted a letter in which the entrepreneur is informed of her obligation to file a return. The entrepreneur has not provided any counter-evidence other than the claim that she participated in the KOR.

The fine for non-compliance is therefore rightly imposed. The court emphasizes that a fine for non-compliance serves as an incentive to fulfill filing obligations, regardless of the amount of tax owed. The fine is deemed appropriate and necessary.

Do you use the KOR or are you considering it? Ask your account manager at Kop of Munt!