- The total cumulative leakage effects from increased excise duties and VAT in the Netherlands cannot be precisely determined.
- Fiscal policy is only one factor influencing price differences, and the scenario is hypothetical due to the EU’s free movement of goods and people.
- The expected decrease in demand for tourist accommodations after the VAT increase is estimated at 6.2%, with a leakage effect of 4.3%.
- The leakage effect is lower than the demand decrease because domestic tourists may shift spending within the Netherlands.
- The government aims to balance revenue, health, and environmental goals, considering but not prioritizing the minimization of cross-border effects.
Source: taxlive.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.
Latest Posts in "Netherlands"
- No VAT Deduction Without Proper Evidence: Burden of Proof on Entrepreneur After Late Filing
- Zero VAT Rate Denied Due to Knowledge of UK VAT Fraud in Metal Trade Chain
- VAT refund for uncollectible debt: bankruptcy period starts, error regarding cash accounting is no excuse
- No refund of import VAT on show jumping horse: prize money and subsidies do not constitute an economic activity
- VAT deduction for construction costs of a home office when rented to a private limited company is permitted
