In your letter of March 1, 2022, you describe that the Netherlands can allow a reduced VAT rate on live streaming under the VAT Directive, because the European Council recently agreed on amending the Directive 2006/112/EC. In response, you ask to issue a policy decision on the basis of which the live streaming of performances and concerts also fall under the reduced VAT rate. You are referring to the temporary approval of a reduced rate for online sports lessons in connection with the on online sports lessons in connection with the corona crisis. Your request cannot be granted. This will be further explained below.
Policy scope for reduced VAT rate live streaming
The VAT Act 1968 (Wet op de omzetbelasting, OB) determines to which products and services to which a reduced VAT rate applies. This Act is bound by the European VAT Directive 2006/112 (the Directive). The services that may fall under the reduced rate are limited to the possibilities set out in the Directive. The VAT Directive has only allowed, since April 6, 2022, a reduced VAT rate on access to the live streaming of performances and concerts. The policy space provided by the amended Directive has been several elements broadened. At the same time, this scope is limited to maximum of 24 points of Annex III of the Directive.
Further process
The Deputy Minister of Finance has promised the Lower House that the government will produce a letter outlining the approach it intends to take to the amended VAT Directive will be dealt with.’ The government decision-making process has not yet been completed. In this decision-making process, several matters will will be weighed, including the evaluation of reduced VAT rates, the outcome of which is expected by the end of 2022. The result is expected at the end of 2022. In view of this process, I am unable to respond to your request in detail.
I may note, however, that adjusting VAT rates on certain services is not expedient. In acute crisis situations, however, this instrument has instrument was used, for example, to prevent foreseeable administrative problems because sports lessons were temporarily given online due to corona.
However, you are asking for a structural policy change. Any such changes should be regulated by law. Concluding I note that the approval for online sports lessons has ended due to the lapse of all coronary restrictions has now ended.
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