The Dutch reduced rate of VAT is expected to rise to 9%, effective from 1st January 2019, as part of an overall tax reform initiative, under the government’s coalition agreement. Currently, the reduced rate of VAT stands at 6%.
The reduced VAT rate applies to specified goods and services, listed in Table 1 to the Dutch VAT Law, including:
- Books and periodicals; and
- Accommodation services.
Enacted legislation on VAT rates, effective as of 1st January 2019, is expected to be released in December.