- The Dutch government plans to raise VAT on hotels and holiday parks from 9% to 21% starting January 2026, aiming to generate over one billion euros annually.
- Experts warn the VAT hike could harm hotel profits, reduce tourist numbers, and potentially decrease overall government revenue.
- ABN AMRO analysis suggests the actual VAT revenue may be much lower than projected, possibly only 285 million euros per year, due to business deductions and potential price sensitivity.
- The tourism sector, already facing high costs, may see reduced profitability, job losses, and a decline in visitors, especially from neighboring countries with lower VAT rates.
- The VAT increase risks destabilizing a sector that contributes around 20 billion euros annually to the Dutch economy.
Source: travelandtourworld.com
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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