5 July 2018

More insecurity in border regions over increased VAT rate


In its coalition agreement, the third Rutte government has expressed the intention to raise the lower VAT rate from 6 to 9 percent starting January 1st, 2019.1 This increase will affect, among other things, vegetables, fruit and many other foods, medicines, books, as well as repair services for clothing, footwear and bicycles. After the increase, the lower VAT rate in the Netherlands will exceed the lowest rates in Belgium (6%) and Germany (7%). What does this announced VAT increase mean for the Dutch border regions? Read more on the results and recommendations in ITEM's report 'Verkenning van grenseffecten van verhoging lage Btw-tarief'.

1: Vertrouwen in de toekomst (The ‘Confidence in the Future’ Rutte III Coalition Agreement), 2017, p. 63, 65.