- The Dutch government is searching for an alternative to the postponed VAT increase.
- The government needs to find a way to cover a €1.2 billion VAT shortfall.
- A proposal to raise the general VAT rate from 21% to 21.4% was met negative reactions from businesses and parliament.
- A proposal to abolish the low VAT rate for certain categories also lacks support.
- The State Secretary has proposed a uniform VAT rate as an alternative.
- A uniform VAT rate could be achieved by raising the reduced VAT rate for all products except food.
- The State Secretary proposes a gradual implementation of a uniform VAT rate, starting with a temporary middle rate for certain categories in 2027.
- A VAT increase in 2026 is still necessary to address the budget gap.
- The State Secretary aims to present a legislative proposal by July 1, 2025.
- If no alternative is found, the VAT increase on culture, media, and sports will be implemented on January 1, 2026.
Source: fiscount.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.
