The consultation closes on 3 November 2025.

The Netherlands government has opened a public consultation on a proposed law targeting VAT responsibilities for digital platforms involved in short-term accommodation rentals and passenger transport on 3 October 2025.

Starting 1 July 2028, online platforms will be required to handle VAT payments for services offered through their systems, unless the individual or business providing the service already manages VAT themselves via the platform. This change aims to level the playing field between smaller providers, who often don’t charge VAT due to exemptions like the Small Business Scheme (KOR) or lack of awareness, and larger providers who are obligated to include VAT.

The current system gives smaller providers a pricing advantage, particularly in sectors like accommodation rentals, where the platforms’ extensive reach amplifies this disparity. The new rules are designed to address this competitive imbalance and ensure fairer market conditions.

In the Netherlands, passenger transport platforms generally do not disrupt competition because most service providers using these platforms are entrepreneurs who already pay VAT. As a result, these platforms primarily have an administrative responsibility. They must verify whether the provider is a VAT-paying entrepreneur or falls under the KOR (Small Business Scheme), which exempts them from VAT obligations. If the platform cannot confirm the provider’s status as a VAT-compliant or KOR-eligible entrepreneur, the platform itself becomes responsible for paying VAT on the services offered by that provider.

The measure is part of a European package that modernises the VAT system and is also being implemented in the Netherlands. This reform is driven by the emergence of new markets and business models resulting from digitalisation. The revised EU rules will affect platforms that enable short-term accommodation rentals and passenger transport services.

The proposed changes are set to take effect on 1 July 2028.

The consultation is open for public feedback until 3 November 2025.