Tuesday January 5, 2010
A greater number of products will be liable to the Netherlands’ reduced VAT rate, the country’s government has announced.
The six per cent rate will now be applied to housing renovation, insulation, digital education information and motor-rickshaws, reports Tax News.
In a bid to encourage consumers to reduce their carbon footprint, there will be tax exemptions introduced for vehicles that make use of green alternative energy sources such as electricity.
There will also be changes implemented to inheritance tax, which means that tax rates on inheritance and gifts will be lowered, while exemption thresholds for partners and children are increased.
Furthermore, the government announced that all income generated from research and development activities will be taxed at a reduced rate of five per cent, while the ceiling on innovation schemes will be removed.
Under current regulations, foreign entrepreneurs and companies are liable to Dutch VAT if they operate a business within the Netherlands.
For information on VAT training
Tuesday November 24, 2009
The European Commission has formally requested a number of member states to amend legislation which allows non-taxable companies to join VAT groups.
According to the European Commission, this current setup is "not in line with the proper application of Article 11 of the VAT Directive".
Proceedings have already begun against Ireland, Spain, Finland, Sweden, Denmark, the Netherlands and the Czech Republic.
The UK government has been given two months to amend its legislation to bring it in line with the EU otherwise the case may be referred to the European Court of Justice.
In the case of Sweden, the proceedings concern the fact that the country limits the VAT grouping system to financial and insurance services, which contravenes the VAT Directive.
Earlier this year in July, the commission adopted a communication on the VAT grouping option provided for in the VAT Directive, which set out how the regulation would be practically implemented.
Wednesday July 15, 2009
The ministry of finance in the Netherlands has launched new VAT legislation for the CO2 industry in order to combat fraud.
It claims there is currently "clear indications" of fraud in the carbon emissions market in the Netherlands, prompting it to announce changed VAT rules, reports Reuters.
Under the new scheme, the carbon permit buyer will pay VAT as of today (Wednesday July 15th), instead of the current system where the seller pays the tax.
The ministry claims carousel fraud, where criminals import VAT-free goods from other countries and then sell them domestically and charging VAT, is one area of concern to be addressed with the new rules.
Jan Kees de Jager, deputy finance minister, said in a statement: "In order to do away with uncertainty for buyers, I have decided that entrepreneurs who sell emissions rights will simply mark the bill with ‘turnover tax transferred’. The buyer will then insert the tax into his or her tax return."
The European Commission recently outlined its position on VAT grouping schemes, stating that companies are only able to join a group which has been introduced by the member state it is present in.
Wednesday June 10, 2009
VAT on painting and plastering work in the Netherlands is to remain reduced, the country’s government has revealed.
Junior finance minister Jans Kees de Jager has revealed that such renovation work on homes older than 15 years will stay at six per cent, which it was reduced to before as part of efforts to boost the country’s economy.
According to Reuters, the politician also confirmed on RTL television that insulation work on homes over two years old is to be lowered from 19 per cent to six per cent.
The government is yet to confirm when the changes will be introduced, but the minister was confident about the plans.
He said: "This is good for employment in the building and construction sector but also for sustainability."
Earlier this week, Reuters revealed that the French government has made carbon credits exempt from VAT in an effort to avoid potentially fraudulent activity.
