- On National Vegetable and Fruit Day, stakeholders in the vegetable and fruit industry in the Netherlands signed the ‘Social Agreement 0% VAT on Vegetables and Fruits’.
- They aim to implement a zero-rate on vegetables and fruits from January 1, 2025.
- Retail parties including Aldi, Dirk, PLUS, and Ekoplaza, as well as the Dutch Artisanal Fresh Retail Trade, agreed that the price difference resulting from the abolition of VAT will be fully passed on to the consumer, making vegetables and fruits 9% cheaper.
- Some political parties also support the initiative.
- The stakeholders argue that the demarcation of fresh, unprocessed vegetables and fruits in relation to this VAT measure is clear and workable for both the Tax and Customs Administration and all parties involved in the chain.
- Earlier this year, researchers from SEO Economic Research concluded that zero percent VAT on vegetables and fruits is legally complex and is expected to yield little health gain.
- The outgoing government is leaving the decision on the possible implementation of the measure to a future government.
- Despite this, some Members of Parliament will soon submit an amendment to the 2024 tax plan to implement the zero percent VAT rate from January 1, 2024, according to a press release from the stakeholders.
Source: taxlive.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
