Netherlands VAT rate proposals
The Dutch government is considering raising the Netherlands VAT rates on a number of supplies. The move would involve reclassify a number of goods and services from the reduced VAT rate of 6% to the standard Dutch VAT rate of 21%.
The supplies include:
- Medicines and pharmaceuticals
- Entrance to sporting, cultural and entertainment events
- Restaurant food and related services
- Hotel accommodation
- Newspapers and books (e-books are already at 21%)
Under the proposals, only the supply of basic foodstuffs would remain at the current reduced rate.
The Dutch VAT rate increased from 19% to 21% in October 2012 to help the government cope will a rising GDP to sovereign debt %, one of the key metrics for membership of the € currency. The IMF had recommended a full merging of the rates in 2014.