2026 switching accommodation from 9% rate to 21% standard rate
Books, sport and cultural services remain at 9% reduced rate
Plans to include books, cultural and sports activities in a Dutch reduced VAT rate rise were dropped on 14 November 2024 following lack of Parliamentary support in the Lower House. This will leave a €1.3 billion gap in the 2026 €2.2 billion VAT-raising initiative which will possibly be filled with VAT rises on other products.
The whole 2025 Tax Plan now moves to the Upper House. Whilst the text still contains the now excused sectors from the rise, the will be modified into the 2026 Tax Plan to retain the 9% rate.
The Dutch government had confirmed on 17 September 2024 in its 2025 Tax Plan that it will recategorise a range of supplies from 9% to 21%. This will raise €2.2 billion to contribute towards the government’s deficit. The rise was part of an original package with ruling coalition partners.
The rise on hotel VAT has been challenged on economic benefits.
The current range of supplies at 9% are:
- Accommodation (except camping) will be switched to the standard 21% VAT rate;
- Books, magazines, newspapers;
- Art and culture imports and supplies;
- Commercial sports activities (gyms; team events) but non-profit remains exempt;
- Cultural services (except cinema, zoos, and other day recreation sites) will also shift to the standard rate. This would include theatres and events (concerts etc).
Details of transitional requirements will be presented later.
May 2023 Spring Memorandum refers to withdrawal of some reduced VAT rates
In its recent Spring Memorandum, the Dutch government has included a review of the application of the 9% reduced VAT rates and zero-rated category to simplify their use and withdraw unwarranted applications. This includes lower rates on hotels and entrance to cultural venues.
In particular, it will be revisiting the reduced rates on:
- Accommodation (hotels and campsites);
- Floriculture;
- Clothing and shoes;
- Labour-intensive services (such as painters, hairdressers and shoemakers);
- Entrance to cultural attractions – museums and cinemas; and
- Books and e-books.
In April 2023, the State Secretary for Finance sent a report to the Lower House of Parliament questioning the effectiveness of the reduced (9%) VAT rate for achieving desired policy goals. The report concluded the aims of applying a reduced VAT rate – i.e., to encourage the purchase of certain goods and services, reduce the tax burden on the less affluent, combat the black market and support certain sectors – often do not lead to the desired outcome. The report also notes that the wealthiest 50% of households benefit twice as much from the reduced VAT rates as the poorest 50%.
A number of other EU countries have recently announced potential reduced VAT rate simplifications, including Czech, Belgium and Italy. In 2022, the EU reduced VAT rate freedoms was agreed to give member states more range of reduced rates.
The standard VAT rate in the Netherlands is 21%. There are two other rates:
- 9% reduced: food and drink, agricultural products and services, medicines, books, daily newspapers and magazines, some works of art, collectors items and antiques, take away food; bars, cafes and night clubs.
- 0%: exports or EU intra-community supplies, services for the international carriage of goods or work on goods that are exported to countries outside the EU; international transport of passengers.
