Hotel guests to bear almost entire burden of VAT increase from 2026, predicts report.

• The low VAT rate for accommodations will be increased from 9% to 21% according to the new coalition agreement
• Hotel rooms and holiday park houses will be 11% more expensive from 2026, with campgrounds being exempt
• ING Research predicts that the price increase will mostly be borne by the guests
• The hospitality industry may struggle to fully pass on the higher costs to customers, especially for restaurants and cafes
• The VAT increase could lead to financial problems for some hospitality businesses
• The higher prices for hotel stays may deter tourists and business guests, potentially harming the local economy as Dutch hotels may become less competitive due to lower VAT rates in neighboring countries.

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.

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