The Small Business Scheme and the Benefits for Startups

You probably recognize it: you want to start a business, but you're unsure if it's the right time. You lie awake for nights just thinking about taking that big step. But this seems to be the moment. You can spend hours daydreaming about all the opportunities you have as an entrepreneur and how you can make the world a little better. That's who we are, entrepreneurs!

A Leap into the Unknown or Start Carefully?

Maybe you want to try first if it will succeed. Starting small with a steady job as a backup gives you a secure feeling. You can also postpone all that arranging with the Chamber of Commerce and the tax authorities. The small business scheme has been devised especially for you.

How the SBS Works

The small business scheme (SBS) is an exemption from sales tax, also known as VAT. This scheme is intended for entrepreneurs who have an annual turnover of less than 20,000 euros. It provides an exemption from sales tax but not from other taxes such as income tax.

Considerations When Using the SBS

There are two moments when you can stop using the SBS. The first is when you exceed the turnover limit of 20,000 euros. In that case, you must immediately unsubscribe from the scheme and start calculating VAT from that moment. The second moment to stop is after three years of participating in the SBS.

Advice When in Doubt

If you still have doubts about the SBS, it's always a good idea to seek advice from a (tax) advisor. They can help you make the right choice for your specific situation.

Establish Your Company with Ease

If soon, or perhaps even now, you need an address to establish your business from, a serviced office is a perfect first step. This way, you can enjoy all the benefits of an office environment without the high costs.

I hope this blog post has helped you gain more insight into the small business scheme. For more detailed information, you can visit the website of the Tax Administration. And if you need personal advice, you can always contact the Tax Administration.

website of the Tax Administration

Welcome to the club!

With kind regards,

Florentijn van den Bos
Chief Flexwork Officer 😉