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Impact Analysis Reveals Consumer Price Sensitivity to VAT Increase on Accommodations

    Consumers are sensitive to VAT increases on accommodations, as shown by an impact analysis conducted following a commitment during the 2025 Tax Plan discussions. The analysis indicates that small price increases may slightly reduce bookings, but consumers are generally price-sensitive to VAT-induced price hikes, especially for budget accommodations. The removal of the reduced VAT rate significantly impacts the accommodation sector, but the government does not plan to reconsider the measure. The actual effects will be monitored from 2026 using the data and methods from the impact analysis.

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.

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