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IMF Pushes For Single Dutch VAT Rate

IMF Pushes For Single Dutch VAT Rate.

In its 2014 Article IV consultation report for the country, the IMF welcomed the Government’s planned reform of the tax system, but it said that consideration should be given to reducing VAT distortions and the labor tax wedge, and extending tax allowances to corporate equity.

The IMF has said that Dutch authorities should implement reform measures to amalgamate the nation’s 21 percent headline rate and its 6 percent reduced rate, which currently applies to foodstuffs, books, and pharmaceuticals, among other items.

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