Abolishment of Reduced VAT Rate on Agricultural Goods from January 1, 2025

• Reduced VAT rate on certain agricultural ‘input goods and services’ will be abolished from January 1, 2025
• This is part of the simplification operation ‘Approach to fiscal arrangements’ from 2023
• There has been debate over VAT on animal feed classified as agricultural goods
• The reduced VAT rate for agricultural goods is outdated since the abolition of the VAT agricultural scheme in 2018
• The demissionary cabinet Rutte IV has included in the Tax Plan 2024 that the standard VAT rate will be applied to certain agricultural goods from January 1, 2025
• The abolished reduced VAT rate applies to goods such as legumes, grains, livestock, beetroot, seeds, timber, straw, animal feed, flax, wool, animals for production, and goods for animal reproduction
• This change will affect sectors like horse breeding, where the reduced VAT rate will no longer apply to the sale of sperm, embryos, and horses destined for slaughter

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.