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Follow-up Questions on VAT Increase Impact Analysis for Accommodation: Dutch Senate Finance Committee

  • The impact of higher VAT on accommodation, combined with increased fuel and tobacco excises, is complex and influenced by multiple factors beyond just tax rates, such as transport and operational costs.
  • Cross-border purchases are inherent to the EU internal market, and tax differences between countries affect consumer behavior, but fiscal policy is only one factor.
  • It is not possible to provide a precise cumulative estimate of lost tax revenue due to cross-border purchases, as consumer behavior would change if foreign purchases were not possible.
  • Studies show that lowering fuel excises increases fuel sales in Dutch border regions, but the overall impact of tax changes on government revenue is difficult to quantify due to the hypothetical nature of the scenario and the EU’s free movement rules.

Source: rijksoverheid.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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