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 Netherlands: VAT on Accommodation Set to Rise from 9% to 21% Starting January 2026
Public
Other countries
Author: Ivana Picajkić
Category:
General subject related
Views:
35
Content accuracy validation date:
29.01.2025
Content accuracy validation time:
08:26h
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.
Other news from Other countries
Reminder: Indonesia Implemented New VAT Regulations with 12% Rate Effective January 1, 2025
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
On December 31, 2024, the Indonesian Minister of Finance issued Regulation No. 131 of 2024 (PMK-131), which establishes a 12% value-added tax (VAT) effective January 1, 2025, applying to both luxury and non-luxury goods. The regulation outlines the calculation of the tax base, including a transition period allowing for an alternative tax base for deliveries to end consumers until January 31, 2025.... Read more
The Netherlands: VAT Fines for E-Commerce Set to Resume; Businesses Must Adhere to Compliance to Avoid Penalties
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
The Dutch government has announced that administrative fines for non-payment or late payment of VAT on e-commerce transactions will resume on January 1, 2025, following a temporary waiver that began with the implementation of the EU’s 2021 e-commerce VAT reforms. This decision comes after addressing initial compliance challenges and aims to reinforce adherence to the One Stop Shop (OSS) VAT report... Read more
The UK's Making Tax Digital Initiative: Revolutionizing Tax Compliance for Businesses
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
Making Tax Digital (MTD) is a UK government initiative aimed at modernizing the tax system and improving compliance by requiring businesses to maintain digital records and submit tax returns electronically. Effective from April 2022, MTD is mandatory for all VAT-registered businesses, with limited exemptions available. Making Tax Digital (MTD) is a UK government initiative designed to modernize th... Read more
China Enacts Comprehensive VAT Law Set to Take Effect in 2026
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
On December 25, 2024, China’s Standing Committee of the National People’s Congress passed a comprehensive Value Added Tax (VAT) law, which will take effect on January 1, 2026. This legislation aims to modernize and unify the VAT system, aligning it with international standards while maintaining the existing rate structure. The new law clarifies taxable transactions, updates exemptions, and establi... Read more
Recent Developments on Electronic Invoicing in the Philippines
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
The Bureau of Internal Revenue (BIR) in the Philippines has resumed its electronic invoicing project, initially targeting the top 100 taxpayers. Companies are advised to prepare their systems for this transition to avoid penalties. The new Electronic Invoicing System (EIS) will streamline tax reporting by allowing vendors to send and store sales data through electronic invoices, with specific taxp... Read more
The Netherlands to Reinstate VAT Payment Default Fines and Implement New E-Commerce Regulations from January 2025
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
Starting January 1, 2025, the Netherlands will resume payment default fines for VAT e-commerce, following the resolution of initial compliance issues within the Member State of Consumption (MSCON) process. The recent announcement by the State Secretary outlines significant changes regarding VAT e-commerce regulations in the Netherlands, effective January 1, 2025. After a temporary waiver, payment... Read more