Reduced VAT rate abolished as of 1 January 2026

17/09/24

The abolition of the reduced VAT rate of 9% on these goods and services will have significant impact on enterpreneurs in various sectors, including culture, media, sports, hotels, and holiday homes. Businesses who currently apply the reduced VAT rate should timely anticipate these changes and consider the impact on pricing, administration, invoicing, and VAT returns. Businesses need to assess to which extent they are able to pass on the VAT rate increase to their customers.

Abolished VAT rates

The following categories of goods and services will be subject to the standard VAT rate of 21% as of January 1, 2026.

Art and culture
This includes the import of art objects, collection objects and antiques, the supply of art objects by the creator, their successors or entitled entrepreneurs.
Museum and theater
The granting of access to museums, music and theater performances will be subject to the 21% VAT rate. This includes concerts, music festivals, theater performances, dance shows, musicals, comedy shows, magicians and DJs.
Books and magazines
The general 21% VAT rate will apply to the borrowing and supply of physical and digital books. It also includes (digital) photo books, comic books, coloring books, school books, digital educational material on a carrier medium, newspapers and periodic magazines.
Sports
Providing access to sports activities will be subject to 21% VAT. This includes commercial gyms. Access to sports competitions, demonstrations, and similar events will also be subject to the general 21% VAT rate. This change primarily affects commercial sports organizations. The VAT exemption for non-profit sports organizations remains in place, i.e. participating in sports at a non-commercial sports club will not be affected by this change.
Accommodation
The 21% VAT rate will apply to the provision of accommodation such as hotels, holiday parks, rental through platforms, guesthouses, furnished holiday homes, and furnished mobile homes (excluding camping). Providing accommodation in (safari) tents and short-term accommodation for students, employees, and asylum seekers are also covered by this change.

Exceptions

Certain types of services have been excluded from the amendments to the scope of the reduced VAT rate.

Camping
The 9% VAT rate will remain in place for providing access to campings. This applies when the tenant brings their own tent, camper, or caravan.
Recreation
Granting access to amusement parks, playgrounds, ornamental gardens, circuses, zoos and cinemas will remain subject to the 9% VAT rate.

Transitional arrangement

A transitional arrangement will be implemented to prevent businesses from applying the reduced VAT rate for services after January 1, 2026 via advance payments. No further indications have been given on how the transitional arrangement will apply to season tickets, subscriptions, and continuous supplies. There are also no further indications on how to deal with single-purpose vouchers that are transferred before January 1, 2026. From the Dutch legislative history, it can be derived that admission tickets for e.g. museums can be considered as single-purpose vouchers in the Netherlands. In case of single-purpose vouchers, the underlying supply is deemed to take place when the voucher is transferred. The applicable VAT rate at the time of transfer should apply, and in our opinion the transitional arrangement does not change this. Feel free to contact your PwC advisor to discuss the implications in more detail.

Purpose of the changes

The purpose of abolishing the reduced VAT rate on these categories of supplies is to increase tax revenue by over 2 billion euros per year. Further, the government aims to simplify the tax system by reducing the number of services eligible for the reduced VAT rate. The adjustments would result in a more consistent taxation of goods and services, as the standard VAT rate is applied more broadly. However, it remains to be seen whether the proposed measures will adhere to these objectives. The exceptions for activities such as camping and cinemas will undoubtedly lead to discussions and possibly even legal proceedings. Moreover, it remains to be seen whether the intended revenue of over 2 billion euros per year will actually be achieved.