COVID 19-measures in the Netherlands
COVID 19-measures in the NetherlandsSubsidy for fixed costs ("Tegemoetkoming voor vaste lasten MKB", "TVL")
Ingmar Pondes
Ingmar Pondes

Managing partner | Tax advisor
+31 (0)545 - 46 36 26

Sanne Freriks
Sanne Freriks

Senior Legal Expert
+31 (0)544 - 39 33 33

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COVID 19-measures in the Netherlands: Subsidy for fixed costs


The TOGS was abolished and the "Tegemoetkoming Vaste Lasten" ("TVL") was introduced instead. This scheme helps small and medium-sized enterprises to pay the fixed charges in the months June to September 2020. The subsidy amounts to a minimum of € 1,000 and a maximum of € 50,000 tax-free.

We hereby inform you about the content of this regulation.

TVL conditions:

  • You have an establishment in the Netherlands;
  • you have a maximum of 250 employees;
  • your company has an "SBI code", which is included in this list of the RVO;
  • you have a turnover loss of more than 30%;
  • you have a minimum of € 4,000 in fixed costs;
  • Your company was founded before 15 March 2020;
  • You have at least one location with an address other than your home address, or the location is separate from your home and has its own entrance or access. This requirement does not apply to out-patient companies and companies with a catering business;
  • your business is not bankrupt and you have not applied to the court for a deferment of payment.

You can claim the allowance either with your main activity or with a secondary activity. If you qualify on the basis of secondary activity only, the conditions of 30% loss of turnover and €4,000 in fixed costs must relate to the secondary activity of the company.

Please note that in the NOW scheme the TVL grant counts as turnover!

How is the amount of the grant determined?

A maximum of 50% of the fixed costs are reimbursed. The "Rijksdienst voor Ondernemend Nederland" ("RVO") determines the amount of the subsidy using the following formula:

Turnover in reference period x % loss of turnover x % fixed charges x 50%

The advance payment of the grant is 80%.

Reference period

Turnover in the reference period is generally considered to be the turnover from June to September 2019 and this turnover will be shown on your VAT return.

If you submit your VAT return on a quarterly basis, then the months of June to September fall into two quarters. In this case, take the turnover for the second quarter (April to June inclusive) 2019 and divide this amount by 3 and add this to the turnover for the third quarter (July to September) 2019.

If you were exempt from VAT in 2019, you have to calculate the turnover from June to September 2019 and back this up with annual accounts or other evidence from the accounting of the 2019 turnover data.

If your company was established between 1 April and 15 November 2019, you will use the turnover figures for the 4 months following the month in which the activities were started.

If you started your business between 15 November 2019 and 1 March 2020, you will calculate the turnover for the period after the day you started your business until 15 March 2020, you will divide this amount by the number of months whose turnover is taken into account and then multiply it by 4.

Loss of turnover

The loss of turnover is calculated using the following formula:

Turnover reference period - estimated turnover June to September 2020  x 100%
Turnover Reference period

The loss of turnover is expressed as a whole percentage.

Your company was founded between 1 and 15 March 2020

If your company was founded between 1 and 15 March 2020, you do not have sufficient data to determine the reference turnover and loss of turnover. In this case, you will receive a grant of €1,000 for your support. Your fixed costs must be at least € 4,000 in the period from June to September 2020.

Fixed costs

You must have at least €4,000 in fixed charges between June and September 2020. You do not need to prove that you have €4,000 in fixed fees in your application, unless you registered your company in the Chamber of Commerce for the first time after 29 February 2020.

Fixed costs are: the costs that always pass through, such as rent, leasing, maintenance, insurance, depreciation of equipment, leasing contracts and subscriptions. Labour costs and variable costs (such as energy and raw materials) are not included here. The wage costs are compensated by the NOW system.

The RVO applies a standard percentage of fixed charges per sector in relation to turnover, see this annex. You do not have to calculate this percentage yourself, it is fixed. The actual fixed costs may differ from the fixed percentage.

Examples for clarification

Example 1: Application formula

  • Company A achieved a turnover of €600,000 (reference turnover) from June to September 2019 and proves this with its VAT return;
  • Company A estimates that it has €300,000 (50%) less turnover from June to September 2020 due to the corona crisis;
  • The percentage of fixed charges in this sector has been set at 40% of turnover. On the basis of normal turnover, the fixed fees are €600,000 x 40% = €240,000. Company A therefore qualifies for TVL as it has €4,000 in fixed fees;
  • Calculation of the amount of grant: 600,000 € x 50% x 40% = 60,000 €.
  • Company A receives the maximum grant amount of € 50,000 with an advance of € 40,000 (80%).

Example 2: Non-compliance with the lower limit of € 4,000

  • Company B achieved a turnover of € 20,000 (reference turnover) in the period June to September 2019 and substantiates this with its VAT return;
  • Company B estimates that it has €10,000 (50%) less turnover from June to September 2020 due to the corona crisis;
  • The percentage of fixed charges in this sector has been set at 10% of turnover. On the basis of normal turnover, the fixed fees are €20,000 x 10% = €2,000.
  • Company B therefore falls below the €4,000 limit of fixed costs and is not eligible for TVL.

Request TVL

You can apply for the grant once from 30 June to 30 October 2020 at RVO. You must then apply for the grant to be definitively determined by 1 April 2021 at the latest.

Do you have questions about the subsidy for fixed costes or would you like support with the application? Feel free to contact our legal advisors or your regular contact person if we can assist you with your application.

SMA Accountants