Source Deloitte
Source rijksoverheid.nl
From May 25 until at least September 1, VAT no longer has to be paid on face masks. This applies to all types of mouth masks (both medical and non-medical) and to all sales. Face masks are currently still subject to the normal VAT rate of 21%.
This is stated in a letter that State Secretary Vijlbrief of Finance sent to the House of Representatives on Wednesday. The reason for the measure is that as of 1 June it will be mandatory to wear a non-medical mouth mask in public transport. When the buses, trains and trams become fuller again, it will not always be feasible to keep 1.5 meters apart.
State Secretary Vijlbrief van Financiën: “We are asking society to wear non-medical masks in public transport from June onwards. Many people already make very creative mouth masks, but most people will probably buy them in a store nearby. As a government, we naturally want to make this as cheap as possible, which is why we will temporarily not charge VAT on this.
By applying the zero rate instead of an exemption, sellers retain the right to deduct input tax. This means that entrepreneurs can still deduct the VAT they pay upon purchase in the VAT return.
Customs duty exemption
In addition, personal protective equipment for healthcare can already be imported under certain conditions with an exemption from customs duties since mid-March . Government institutions, charities or philanthropic institutions, aid organizations, hospitals, care institutions and care providers in the BIG register can use the exemption if they have received a permit from Customs. This also applies to a private organization or a purchasing consortium that imports on behalf of the aforementioned institutions.
The policy decision containing the practical matters regarding the reduction of the VAT rate to 0% will soon be sent to the House of Representatives.
More information about wearing a non-medical mouth mask can be found here.
