January 2025 updates to Dutch VAT law

The Dutch government will raise the VAT rate on various goods and services in the accommodation and cultural sectors from 9% to 21%, starting 1 January 2026. The government expects this increase to generate approximately €2.2 billion annually to support social programs and infrastructure.

Starting in 2026, the Dutch government plans to eliminate the reduced VAT rate of 9% on various goods and services in the accommodation and cultural sectors, raising it to the standard rate of 21%.

This change will affect:

• Accommodations: Hotels, guesthouses, and other short-term lodging will now be taxed at 21%, while campgrounds will remain at the lower rate.
• Cultural Goods and Services: Items such as books, museum visits, and tickets for concerts and performances will also see the VAT increase. However, certain attractions like cinemas, amusement parks, and zoos will continue to enjoy the reduced rate.

The change applies to owners of accommodation offering short-stay overnight accommodation, and entrepreneurs in the cultural sector and entrepreneurs in the sports sector. It is expected to enter into effect on 1 January 2026.

The government aims to boost tax revenues with this increase, which is expected to generate approximately €2.2 billion annually. However, there is significant opposition from the cultural and leisure sectors, which argue that the hike could hinder recovery from pandemic-related losses and limit public access to cultural activities.