Internet consultation on new VAT obligation on platform economy
- VAT Liability for Platforms: Starting 1 July 2028, digital platforms offering short-term accommodation rentals and passenger transport will be liable for VAT on all services—unless the provider pays the exact VAT. This aims to level the playing field between small providers (often exempt via schemes like KOR) and larger businesses.
- Administrative Burden & Exceptions: Platforms must maintain extensive records. For transport services, where VAT is already commonly paid, platforms must prove users are VAT-compliant or face VAT liability themselves.
- Consultation Open Until 3 Nov 2025: The Ministry of Finance invites feedback via an internet consultation to shape the law’s implementation. These changes stem from EU’s ViDA package.
Source Taxence
Internet consultation on new VAT rules for platform economy
- The Ministry of Finance has initiated an internet consultation on the draft proposal for implementing the VAT Directive in the Digital Age, specifically targeting the Platform Economy Act, with responses accepted until November 3, 2025.
- Effective July 1, 2028, digital platforms facilitating short-term rentals and passenger transport will be required to pay VAT on their services, along with a mandate to maintain proper records.
- The proposal outlines four key measures: the introduction of a new platform fiction, a KOR exception, revised place of service rules for facilitation services, and a redefinition of short-term rental services (capped at a maximum of 30 nights).
Source Taxlive
See also
Dutch Government Proposes VAT Obligation for Digital Platforms Starting July 2028
- Digital platforms for accommodation rental and passenger transport will be subject to VAT from July 1, 2028.
- The measure aims to address competition issues between small and large service providers.
- Platforms must ensure VAT compliance unless the provider does so independently.
- Passenger transport platforms mainly face administrative obligations.
- Public consultation on the proposal is open until November 3, 2025.
Source: fiscaalvanmorgen.nl
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