- The State Secretary responded to a message from the Foundation Group Accommodations Netherlands (GAN) regarding the transition from the reduced to the standard VAT rate for lodging and existing contracts of group accommodations
- GAN requested that group accommodations be exempt from the VAT increase if rental contracts were signed before January 1, 2025
- The State Secretary stated that the fiscal neutrality principle prevents only this form of lodging from being exempt from the VAT increase
- Making a distinction for group accommodations would require a new fiscal definition, which may not be legally sustainable
- The State Secretary believes that exempting only group accommodations would lead to complications and higher administrative costs
- The VAT increase affects the entire lodging sector, so there is no reason to exempt only group accommodations
- The State Secretary does not doubt the legal validity of the VAT increase
- The VAT is due at the time the service is provided or when a prepayment is made, regardless of when the contract is signed
- The State Secretary does not plan to include a policy decision in the partial postponement of the transitional arrangement for the abolition of certain reduced VAT rate table items for group accommodations with existing contracts.
Source: futd.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.
