- Improper VAT Exemptions: An investigation by Follow the Money (FTM) across 14 Dutch clinics revealed that the standard 21% VAT is routinely omitted on purely cosmetic treatments (such as Botox and fillers) by improperly claiming an exemption for medical necessity.
- Massive Financial Scale: Driven by a surging market where Botox treatments doubled and fillers rose by 80% between 2019 and 2022, the injectables market is valued at €400 to €450 million annually, resulting in significant potential revenue losses for the Dutch Tax and Customs Administration.
- Enforcement Bottleneck: The tax authority finds it virtually impossible to audit compliance or calculate lost tax revenues because tax inspectors cannot make medical determinations and generally lack legal access to confidential patient records.
Source Taxlive
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