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Dutch Senate Grapples with Government’s VAT Increase Proposal

  • The Eerste Kamer debated the Tax Plan 2025 with State Secretary Van Oostenbruggen
  • A vote is expected next week with a majority likely to approve despite discomfort over the VAT increase on books, culture, sports, and media
  • The VAT increase from 9 percent to 21 percent in 2026 is intended to prevent a budget shortfall of 1.3 billion euros
  • The government has promised to seek alternatives but negotiations will only start at the end of January
  • Van Oostenbruggen insists any alternatives should stay within the VAT domain and yield at least the same revenue
  • Questions in the Chamber focused on the status of the VAT increase
  • The VAT increase on sports, media, and culture is temporarily suspended
  • Van Oostenbruggen has decided to suspend the transitional law as a concession to entrepreneurs
  • Debates also covered VAT on lodging, wealth tax in box 3, measures to reduce poverty, simplify the tax system, promote green growth, and tax measures for Caribbean municipalities
  • The Eerste Kamer desires more time to carefully handle tax proposals
  • Eight motions were submitted by the Eerste Kamer
  • Motions included stimulating healthy food in the new tax system, setting up an independent advisory committee, and various others related to tax regulations and exemptions
  • Most motions were advised against by the State Secretary except a few where the Chamber was left to decide

Source: fiscaalvanmorgen.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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