- The Dutch government has questioned the effectiveness of the reduced (9%) VAT rate in achieving its desired objectives, including encouraging the purchase of certain goods and services, reducing the tax burden on the less affluent, combating the black market, and supporting certain sectors.
- The recent report found that applying the 9% reduced VAT rate often does not lead to the desired outcome and that it is a costly and ineffective measure that has little impact on people’s buying habits.
- The report recommends that the government look into additional ways to achieve the initial goals set out by the lower rate, including lowering income tax or subsidies.
- The government will respond before the presentation of the 2024 Budget scheduled for 19 September 2023.
Source VATit
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