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Public Other countries Author: Ivana Picajkič
The Dutch Senate lacks a majority to support the proposed VAT increase on sports, books, and hotels. A motion to separate the VAT measures from the tax plan was rejected by the cabinet, despite concerns from various political parties about the effects of such an increase. The VAT hike is part of the government's comprehensive tax package, meaning the Senate would need to reject the entire tax plan to block it. The Council of State has emphasized the complexity and significant impact of the VAT increase, suggesting it should have its own legislative process. The Lower House will discuss the VAT increase in mid-November, with the Upper House scheduled to consider the full Tax Plan Package 2025 on December 9-10, 2024.
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Content accuracy validation date: 13.11.2024
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There is no majority in the Senate for the VAT increase on sports, books and hotels. The motion, which was submitted earlier this month, to include the VAT measures in the tax plan in a separate bill was rejected by the cabinet. This motion has raised a number of questions from D66 to CDA, from GroenLinks-PvdA to SGP, with the most important question being: What are the effects of such VAT increase? 

The VAT increase is part of the cabinet’s entire tax package, if the Senate wants to block the VAT increase it will have to vote down the entire tax plan.

The Council of State emphasizes that the VAT increase concerns complex legislation with a major impact that should be given its own legislative process.

The Lower House will consider the VAT increase in mid-November. The plenary treatment of the Tax Plan Package 2025 in the Upper House is scheduled for Monday 9 and Tuesday 10 December 2024.

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