Budget 2026: VAT Rate Reversals, Property Rules & Cross-Border Compliance

This newsletter discusses the tax proposals that the government is likely to introduce on Budget Day as part of the 2026 Tax Plan package. A number of other tax legislative amendments are discussed as well.

• Reversal of VAT Rate Hike for Culture, Media & Sports The planned increase from 9% to 21% has been cancelled, and the related school compensation scheme for teaching materials is also withdrawn. However, the VAT increase on accommodation remains in place, with a transitional rule applying the higher rate to 2026 overnight stays—even if booked and paid in 2025.
• Property Investment Services – VAT Adjustment Scheme Starting 2026, property investment services will be subject to a five-year VAT adjustment period with a €30,000 threshold per service. This aims to curb tax-saving structures involving short-term VAT-liable rentals.
• VAT Exemption for Social & Cultural Services (Profit-Making Entities) From 1 January 2026, institutions with a profit motive can benefit from VAT exemption for social or cultural services—reversing a 2023 Supreme Court ruling that excluded them.
• Objections to Nil VAT Returns A legislative change now allows formal objections and appeals against nil VAT returns, effective 1 January 2026, clarifying that “payment” includes zero amounts.
• Refund Requests via Foreign Portals – Documentation Requirement From 1 January 2026, non-Dutch businesses must include invoices and import documents in VAT refund requests if the value exceeds €1,000 (or €250 for fuel).
• Zero Rate Clarification for Warships Effective 1 January 2027, warships are explicitly listed in Table II, confirming that zero VAT applies to their delivery, repair, rental, and related services—without extra conditions.

Source Deloitte

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