Second-hand Shops Return to Court to Challenge VAT on Second-Hand Goods

• Second-hand stores in the Netherlands are taking legal action again to challenge the VAT on sales of second-hand goods
• While commercial dealers pay VAT only on profit margins when reselling used items, thrift stores must pay 21 percent VAT on the full selling price of donated goods
• This tax burden hampers reuse efforts despite thrift stores contributing to sustainability and providing employment for over 14,000 people with limited job market access
• Other European countries like Belgium, Germany, France and Denmark have reduced VAT rates for thrift stores, and the EU adopted a 2023 directive encouraging such measures
• The Dutch Finance Ministry opposes changes citing complexity and costs, though the extra tax represents only 0.03 percent of total VAT revenue, prompting continued legal appeals for a definitive ruling

Source: taxence.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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