- The Dutch government plans to abolish the reduced VAT rate (9%) for ornamental horticulture products, raising it to the standard 21% from January 1, 2028.
- This change will apply to products like flower bulbs, cut flowers, house and balcony plants, bedding and perennial plants, and nursery products sold in the Netherlands, but not to exports.
- The measure is expected to increase consumer prices, affect demand, turnover, and employment, especially in the flower retail sector, and generate €328 million more in annual tax revenue.
- The reduced VAT rate was found ineffective in supporting low-income consumers or job creation, and the government aims to simplify the tax system and better target support.
- Public consultation on the proposal is open until May 7.
Source: fiscaalvanmorgen.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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