- Government Proposal: The government has outlined alternatives to the VAT increase on culture, media, and sports, such as removing specific reduced rates, increasing the reduced rate, increasing the general rate, or a combination of these, leaving the final decision to parliament.
- Alternative Sources of Coverage: Alternatives include abolishing other reduced VAT rates to simplify the tax system, which would impact specific sectors, or increasing the existing reduced (currently 9%) and/or general VAT rates (currently 21%), with the House of Representatives opposing an increase in the general rate.
- Implementation and Timeline: Parliament must make a decision soon to provide clarity and proceed with legislative changes by 1 July 2025, for the new measures to take effect on 1 January 2026. If no alternative is chosen, the VAT increase on culture, media, and sports will automatically take effect on 1 January 2026.
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