Netherlands reduced VAT rise to 9%
The new Dutch government has proposed increasing the reduced VAT rate from 6% to 9%. The reduced VAT rate applies to basic foodstuffs, books, hair dresser services, swimming pool entrance, medicines, art, antiques, entry to museums, zoos, theatres and sports and a variety of other services. The likely implementation date is 1 January 2019.
Prime Minister Mark Rutte’s government is putting forward the proposal as a ‘social level tax’. The VAT rise will help fund a simplification of the income tax brackets – from four to two.
The Dutch standard VAT rate of 21% will remain unchanged.
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