The Netherlands Ministry of Finance issued a letter to the parliament outlining alternative measures to address the budget shortfall caused by cancelling the proposed VAT increase on media, culture, and sports from 9% to 21%.
The VAT increase proposal was approved in 2026, but the government agreed to abolish the proposed VAT rate hike from 9% to 21% and maintain the 9% rate if alternative amendments are made. The letter suggests solutions like removing specific reduced VAT rates, raising the reduced or standard VAT rate, or combining both.
A shift to a uniform rate with some exceptions has been put forward but wouldn’t take effect until 2027. Any proposed plan must be finalised by 1 July 2025.
