The Senate suggested submitting the VAT plan as a separate bill based on the Council of State's recommendation for thorough parliamentary consideration. However, the State Secretary opposed this idea in letters to both houses, arguing that integrating VAT measures into the broader Tax Plan is essential for several reasons.
Cabinet in Netherlands refuses to submit separate VAT plan
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Author: Ivana Picajkić
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Content accuracy validation date:
21.11.2024
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The State Secretary opposed submitting the VAT plan as a separate bill, despite the Senate's suggestion based on the Council of State's recommendation. Instead, the State Secretary argued for integrating VAT measures into the broader Tax Plan for several key reasons.
The reasons for integrating VAT measures into the broader Tax Plan are as follows:
- Financial Clarity: Including budget-related measures ensures transparent financial justification,
- Entrepreneur Preparation Time: The State Secretary believes that at least six months are needed for entrepreneurs to prepare and adjust their ICT systems. This preparation time is uncertain if the VAT measure is in a separate bill, potentially delaying clarity on legislation until mid-2025.
- Tax Relief Financing: Advance payments in 2025 for services in 2026 or later must be taxed at the general VAT rate. If this process was separated from the main tax plan package, it might not happen consistently due to potential delays in parliamentary approval.
By keeping VAT measures within the broader Tax Plan, the State Secretary aims to maintain financial clarity, provide adequate preparation time for businesses, and ensure consistent implementation of tax changes.
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