Compensation of 4,000 Euro for Entrepreneurs in Affected Sectors

Source: Rijksoverheid.nl and kvk.nl

The Entrepreneur Affected Sectors Allowance COVID-19 (TOGS) is 1 of the 9 emergency measures of the cabinet to support entrepreneurs during the corona crisis. The TOGS is for entrepreneurs who are directly damaged by various government measures to contain the COVID-19 virus. Duped entrepreneurs receive a one-off payment of € 4,000 to pay their fixed costs. This payment is per business, not per business location. The TOGS can be requested via rvo.nl/tegemoetkomingcorona.

The government’s health measures have direct consequences for income in a number of specific sectors. For example, due to the forced closure of food and beverage outlets, certain groups of entrepreneurs in the non-food sector and events, the ban on contact professions in the field of grooming and cancellations in the travel industry due to the ‘only-necessary travel’ advice for Dutch people. For these entrepreneurs, the Cabinet is doing something extra to address the urgent need, in addition to other measures such as compensation for wage costs and expanded possibilities for bridging loans.

Where and when can I apply to use the Entrepreneur Affected Sectors Allowance COVID-19 (TOGS)?

Applications can be submitted by entrepreneurs via rvo.nl/tegemoetkomingcorona from Friday March 27, 2020 up to and including Friday June 26, 2020. The company must be established in the Netherlands and the main activity must be evident from the registration of reference date March 15, 2020 in the trade register. If the correct information is provided, the application will be approved and paid within 3 weeks. However, RVO is committed to doing this within 1 week. You have 3 months, so until Friday, June 26, 2020, to submit an application.

Preparing for the application

A number of Chamber of Commerce data is filled in automatically when you submit the online application. Check that information. View the overview of questions in the online application form (PDF) and gather all necessary information in advance.

What do you need?

• eHerkenning tool level 1 or DigiD
• Chamber of Commerce number of your company (note: not the location number / RSIN)
• SBI code of the main activity of your company
• bank account number of your company
• correspondence and visiting address of your company
• contact details: name, telephone number, e-mail address

If an intermediary submits the application, you need an authorization. You do not have to send this authorization, but it can be requested during checks.

Who is the scheme for Entrepreneurs Affected Sectors COVID-19 (TOGS) intended for?

Entrepreneurs in the sectors below can apply. These are entrepreneurs who are directly affected by the measures taken by the government to combat the corona virus. A detailed overview of sectors is available (for a detailed overview, see publication in the Government Gazette). The list of branches and sectors will be updated on Monday March 30:

• Food and beverage outlets: e.g. restaurants, cafeteria, event catering, cafes
• Hair and beauty care: hairdressers, pedicures, make-up artists, among others
• Event locations and organizers
• Saunas, solariums, swimming pools, fitness centers, sports clubs and sporting events
• Certain private cultural institutions, such as museums, circuses, theaters, theaters, cinemas and cultural education institutions
• Driving school owners
• The travel industry, such as travel agencies and tour operators
• Casinos

This concerns companies located outside the home. The only exception are food and beverage outlets, for example a café where the owner, tenant or tenant lives upstairs.

I understand that there is an extension of the scheme, for which sectors is it?

Additional groups of entrepreneurs in the non-food sector, such as shopkeepers, can also use the Entrepreneurship Affected Sectors COVID-19 (TOGS) scheme from Monday 30 March 2020. On March 28, the Ministry of Economic Affairs and Climate (EZK) announced the extension of the scheme on the basis of the requests for TOGS made since Friday and the recent acute, negative developments in store sales. “These are exceptional times that have major consequences for entrepreneurs. That is why the government immediately said when it announced the Emergency Package for Jobs and the Economy that this package never stands still. Entrepreneurs in the non-food sector may remain open, but they see a sharp drop in their income due to the need for social distancing. Because they are hit hard, we will expand the scheme ”.

The Cabinet decided on 7 April to expand the TOGS scheme once more. As a result, various contact professions, such as tattoo shops, have access to the TOGS scheme. Smaller SME food retailers, services such as taxis, practices of dentists, physiotherapists and suppliers of food and drink outlets or (cultural) events have also been added.

What do I have to meet in order to use the TOGS?

• The main activity of your company, as registered in the Trade Register of the Chamber of Commerce, must correspond to one of the main activities included in the policy rule (SBI-code).
• The company has a physical location in the Netherlands, the business address of which is registered in the Chamber of Commerce Trade Register. Your company may not have a physical location at a residential address. This excludes pub and restaurant owners who rent, lease or own a catering establishment.
• You expect your company to suffer a loss of turnover of at least € 4000 in the period from March 16, 2020 (day after the announcement of the first emergency measure) to June 15, 2020.
• You have at least € 4000 in fixed expenses in the period from March 16, 2020 (day after the announcement of the first emergency measure) to June 15, 2020.
• Your company employs a maximum of 250 employees. This is evident from the registration in the Chamber of Commerce Trade Register.
• Your company must be established and registered with the Chamber of Commerce on reference date 15 March 2020. Companies can have different legal forms. For example: sole proprietorship, private limited company (eg), general partnership (vof), limited partnership (cv), partnership, cooperative, association and foundation.
• Your company is not a public company.
• Your company is not bankrupt.
• Your company has not filed a petition for suspension of payments with the court.
• You declare with the application that over the current and the past 2 tax years no more than 200,000 euros in government aid has been received (de minimis regulation). Companies that have already exhausted the entire amount are not eligible for the scheme.

Why is my sector, sector not in the list of SBI codes to qualify for the scheme for compensation for entrepreneurs affected sectors COVID-19 (TOGS)?

The designated sectors have to do with the forced closure of food and beverage outlets and events, the ban on contact professions in the field of grooming and cancellations in the travel industry due to the ‘only-necessary travel’ advice for Dutch people.

If you do not qualify, the cabinet has other measures, drawn up in the Emergency package for economics and jobs.

Due to the economic consequences of corona, Dutch entrepreneurs can apply to be eligible for exceptional financial support from the cabinet through the temporary scheme for wage costs (NOW) or extra support for self-employed persons. Companies can also make use of the various tax measures and broadened possibilities for bridging loans. Click here for an overview of all schemes.

I had to (compulsory) close my case due to corona. But I get the message that I am not eligible due to my SBI. Where can I report if I believe my business is eligible and should fall within government-selected industries?

If you register a company with the Chamber of Commerce, you will receive an SBI code (standard company classification). This code tells something about the economic activity of your company. Other companies use this information, for example to search for customers. The government uses the SBI codes to make policy. It is up to entrepreneurs themselves to change the SBI code at the Chamber of Commerce if the SBI code is incorrect, or if your business activities change. Everyone who was registered in the trade register before March 15 is subject to the SBI code that was there at the time.

We are aware of the signals that companies believe they are eligible for the scheme. RVO makes an inventory and passes these signals on to the Ministry of Economic Affairs and Climate. This scheme is still open until June 26, which means that all aspects of the scheme are continuously monitored. This is not necessarily the last thing we say about this arrangement. Also check whether your company is eligible for one of the other schemes in the package.

I am registered under wrong SBI codes. How can it be adjusted?

Entrepreneurs who are entitled to the TOGS scheme, but see that they are registered under other so-called SBI codes in the Trade Register, can report this to RVO. The registration will be considered on a case by case basis. Further information on how to report this to RVO will follow on the RVO site.

If I do not qualify for the Allowance for Entrepreneurs Affected Sectors COVID-19 (TOGS). Where can I go?

It is not the only arrangement in the emergency package. We take criticism and concerns seriously. This scheme is still open until June 26, so we can continuously monitor all aspects of the scheme. This is not necessarily the last thing we say about this arrangement. In the meantime, also check whether your company is eligible for one of the other schemes in the package.

The cabinet has drawn up the Emergency package for economics and jobs. Due to the economic consequences of corona, Dutch entrepreneurs can apply to be eligible for exceptional financial support from the cabinet through the temporary scheme for wage costs (NOW) or extra support for self-employed persons. Companies can also make use of the various tax measures and broadened possibilities for bridging loans.