- The low VAT rate for cultural goods and services, media, and sports will be maintained, as approved by the Tax Authorities, Customs, and Benefits Agency. Initially set to increase on January 1, 2026, the plan was reversed due to societal and political pressure, except for hotel stays. The implementation assessment deemed the impact “medium” with minimal risk of process disruptions and no need for ICT system changes. The financial coverage for the €1.3 billion revenue loss will come from limiting the inflation adjustment for tax-free amounts and tax credits to 57%, resulting in a higher tax burden for citizens. The low VAT rate is financially favorable for the tax authorities, saving €750,000 in incidental costs and €490,000 in structural enforcement costs, with a personnel impact of a 5.5 FTE incidental saving and a 3.5 FTE structural increase.
Source: accountancyvanmorgen.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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