Netherlands Delays VAT on ‘Free’ Social Media Services Amid European Debate and Legal Uncertainty

• The Dutch tax authorities are not planning to impose VAT on ‘free’ social media services for now.
• The government cites a lack of clear legal basis and the difficulty of valuing personal data as reasons.
• The 2018 EU guideline, which states that no VAT can be levied on free digital services due to the absence of a direct link between service and data, still applies in the Netherlands.
• The government cannot estimate potential VAT revenue from social media, as there is no clear calculation method or legal framework.
• The cabinet is cautious about retroactive tax assessments and notes possible wide-ranging effects, including on other sectors.

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.

---

---