In the field of VAT, a major reform is also envisaged, especially a reform of the VAT rates.
- VAT rate reform aims to meet several social wishes by providing a 0% tariff for a number of important basic products. This mainly concerns fruit and vegetables, medicines, diapers and other products for intimate hygiene protection, and public transport.
- The tariff reform aims at adjusting the tariff structure whereby the existing reduced tariffs of 6% and 12% would be integrated into a new reduced rate of 9%. However, the 6% rate would be retained for utilities (for domestic use) to which everyone must have access, such as electricity, natural gas and heat via heating networks, as well as tap water.
- On the other hand, coal, as a highly polluting fuel, would become subject to the normal rate of 21%.
- The tariff reform aims to consolidate the currently temporary reduced rate for demolition and reconstruction of the sole and private home, albeit at the new rate of 9% instead of the current rate of 6%.
- The proposal also contains measures aimed at improving the effective collection of the VAT actually due. The VAT gap would be further reduced through e-invoicing and e-reporting.
- Existing subsidies for fossil fuels in the form of reduced excise duties would be further phased out.
Source Deloitte
