Exemption from the annual accounts obligation: when?

Sometimes a board genuinely cannot prepare the annual accounts: the records have been destroyed, the data cannot be found, or there is another reason why it cannot be done. For those cases there is the possibility of applying for an exemption from the annual accounts obligations. It is not an extension scheme and not a formality.

What counts as a serious ground

KVK formulates it like this: there must be a serious ground, and in practice that means that it is technically impossible for the directors to prepare, present and adopt the annual accounts. Think of records that can no longer be reconstructed — not of being busy, short of time or a disagreement.

Where you apply

The application goes through RVO, the Netherlands Enterprise Agency. At exemption options for annual accounts you can read how the application works. You then file the exemption statement with KVK. KVK also mentions the possibility at annual accounts: to file or not.

What continues to apply regardless

An exemption concerns preparing, presenting and adopting. You still have to keep and retain your records, and if a creditor, shareholder or depositary receipt holder asks for it, you must make the balance sheet with notes available. So an exemption does not release you from your bookkeeping.

For most entrepreneurs the realistic route is a different one: making sure the figures are finished in time. See for that the checklist for preparing and the deadlines in a row.