The Netherlands: VAT on Accommodation Set to Rise from 9% to 21% Starting January 2026

Starting January 1, 2026, the VAT rate on accommodation will increase from 9% to 21%, affecting both new and existing group accommodation contracts. This change, confirmed by the State Secretary of Finance, is part of the 2025 Tax Plan and will apply to payments made in 2025 for services provided in 2026. The government has stated that it cannot exempt group accommodations from this increase due to legal and administrative challenges.

The VAT rate on accommodation will rise from 9% to 21% starting January 1, 2026, and this change will affect not only new contracts but also existing agreements for group accommodations. This was confirmed by the State Secretary of Finance in response to inquiries from the Finance Committee.

The 2025 Tax Plan outlines this VAT increase, which will apply to payments made in 2025 for services rendered in 2026.

The State Secretary explained that the principle of fiscal neutrality prevents the government from exempting group accommodations from this VAT hike. He noted that the nature of group accommodations is not significantly different from other lodging types, as they all essentially provide beds for short stays. Creating a separate classification for group accommodations would require a new legal definition, which poses challenges regarding its validity. Additionally, implementing such a change would create a significant administrative burden and potential revenue loss.