Partial Delay in VAT Rate Transition for Specific Goods and Services

• The government adopted a motion in the Tax Plan 2025 to explore alternatives to abolishing reduced VAT rates on various goods and services as listed in Table I of the VAT Act 1968
• The search for alternatives does not include lodging services as specified in item b.11 of Table I
• Article LXII introduces a transitional arrangement where payments and transfers of vouchers in 2025 related to deliveries and services from 2026 will be taxed at the standard VAT rate of 21%
• The State Secretary finds it undesirable to apply the standard rate to payments and vouchers starting January 1, 2025, due to high administrative and societal burdens
• As a result, the transitional arrangement for payments and vouchers concerning certain table items such as a.29, b.14, and b.17 is postponed until July 1, 2025
• However, the transitional arrangement for lodging services item b.11 starts from January 1, 2025
• Payments in 2025 for these services will be subject to the standard VAT rate if they occur on or after January 1, 2026
• This decision will take effect on January 1, 2025

Source: nlfiscaal.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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