Tax Plan 2024: Changes to VAT and Real Estate Transfer Tax in the Netherlands

• The Dutch government has published its fiscal plans for 2024, including proposed changes to VAT and transfer tax.
• From January 1, 2025, the reduced VAT rate will be abolished for input goods in the agricultural sector, such as grains, livestock, and seeds.
• Previously, the reduced VAT rate was applied to these goods to offset the non-deductibility of VAT for agricultural entrepreneurs.
• The government is considering the retention, reduction, or abolition of reduced VAT rates and the introduction of a zero rate for vegetables and fruits.
• The government also plans to remove the exemption from transfer tax for the acquisition of new real estate through share transactions, unless at least one-third of the shares in the real estate company are transferred.
• An exception will be made if the buyer uses the new real estate for at least 90% of activities eligible for VAT deduction, and a reduced transfer tax rate of 4% will be introduced for certain situations.
• There will be a transition period for share transactions agreed before September 19, 2023, allowing for the application of the exemption if certain conditions are met.

Source: btwinstituut.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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