The Spring Memorandum 2023 discusses several tax-related topics. Firstly, it mentions a loophole in Dutch tax law where owners of real estate can claim back VAT by renting out the property with VAT and then switching to exempted rental. The government is exploring the possibility of revising this rule to include costly renovation services. Secondly, from January 2025, virtual services for cultural, artistic, sporting, scientific, educational, or entertainment purposes will be subject to VAT in the country where the consumer resides. Thirdly, the government will examine the application of reduced VAT rates in various sectors such as horticulture, labor-intensive services, culture, and lodging. Lastly, the article talks about changes to the application of VAT and transfer tax in real estate share transactions, with the government proposing to eliminate the exemption of transfer tax for such transactions from 1 January 2024.
Source: kpmg.com
