January 2025 updates to Dutch VAT law
There are a number of changes to the Dutch VAT regime from 1 January 2025. There will also be a number of Dutch reduced VAT rate updates in 2026. See our Dutch VAT guide for more details
21% VAT on certain agricultural goods
From 1 January 2025, the VAT rate will increase for the supply of certain agricultural goods: from 9% to 21% VAT. These are cereals and legumes and which are not food, seedlings for the cultivation of fruit and vegetables, (poultry) livestock and offal, carrots, agricultural and horticultural seeds, round timber, straw, animal feed, flax and wool.
Place of service with virtual services
Do you provide a cultural, artistic, sporting, scientific educational service or entertainment service? And is this service virtual? As of 1 January 2025, the service is taxed in the country where the customer lives or is located. This means that the VAT rules of that country then apply. This is part of the EU VAT virtual events changes.
Amendment to the additional margin scheme
As of 1 January 2025, the so-called additional margin scheme will expire. As a reseller (trader), have you purchased antiques, art or collectibles at a reduced rate, imported or acquired intra-Community? Then you can no longer apply the margin scheme to the sale of these goods. If these goods were not sold before 1 January 2025, you may deduct the input tax on them in the first period of 2025.
VAT on service costs
When renting out real estate, the landlord charges service fees in certain cases. For example, for cleaning, repairs, or the supply of gas, water and electricity. The question then is whether these service costs are taxed or exempt from VAT.
From 1 January 2025, these 2 possibilities apply:
- the service costs are not in the rental.
In that case, these costs with VAT are separately on the invoice.
However, the tenants themselves or jointly must be able to choose the service provider. And when it comes to actual consumption of, for example, gas, water and electricity, the tenants must have an individual meter.
- the service costs are in the rental.
If the rental is subject to VAT, so are the service costs. And if the rental is exempt from VAT, then the service costs are also exempt.
2026 Rate Increase on Accommodation and Cultural Sector
The Tax Plan proposes, with effect from 2026, to abolish the 9% reduced VAT rate on several goods and services in the lodging and cultural sector. The most notable goods and services that will from that date be subject to the standard VAT rate of 21% are:
- accommodations: this includes hotels, guesthouses and other short-term accommodations (including through an online platform), but excludes camp sites;
- cultural goods and services such as books, sporting events, museums, and musical and theatre productions. However, theme parks, playgrounds, circuses, zoos and cinemas may continue to benefit from the reduced 9% rate; and
- the import of art and (art) exhibition objects as well as the supply of art by the artist.
