The Netherlands: New Coalition Government Unveils Ambitious Tax Plans

The new Dutch coalition government unveiled its comprehensive tax plans this morning, outlining several significant changes, particularly from an indirect tax perspective. These measures are expected to have substantial implications for various sectors.

Key Tax Measures Announced:

Increase in Gambling Tax Rate

• The gambling tax rate will rise from 30.5% to 37.8%, effective January 1, 2025. This substantial hike aims to generate additional revenue from the gambling sector.

Abolition of Reduced VAT Rate for Lodging

• The reduced VAT rate for lodging (excluding camping) will be abolished starting January 1, 2026. Consequently, the VAT rate for these services will increase from 9% to 21%.

Changes in VAT for the Cultural Sector

• Similarly, the reduced VAT rate for the cultural sector, excluding cinemas and day trips, will be eliminated as of January 1, 2026. The VAT rate for these services will also rise from 9% to 21%.

Differentiated Fly Tax on Tickets

• A new differentiated rate in the fly tax on tickets will be introduced based on the distance covered. This measure will take effect on January 1, 2027, targeting both domestic and international flights.

Circular Plastic Packaging Tax

• A new tax on circular plastic packaging will be implemented starting January 1, 2028. This tax aims to promote the use of sustainable packaging materials and reduce plastic waste.

Budgetary Impact and Business Implications

The total estimated budgetary impact of these measures is projected to be EUR 2.8 billion. This significant financial impact underscores the government's commitment to restructuring the tax landscape to boost revenue and encourage sustainable practices.