item-cross-border-impact-assessment-2018_extensive-report.pdf
(7.03 MB, PDF)
… the additional tax revenues from the rate increase, the current price differences between the Netherlands, Belgium and Germany, and the price differences between supermarkets selling products that predominantly fall under the low VAT rate. We revisit the above questions in the concluding chapter, where we make a number of recommendations for follow-up research, with a view to potential future VAT policy within the European Union. 2. The VAT system and recent amending proposals 2.1 VAT history … spending plays an even smaller role in the province of Drenthe. The abovementioned study does not present any data on German spending in Drenthe, but only 1% of daily spending in the Drenthe region goes abroad.61 Foreign border residents do seem to visit the Netherlands more often than vice versa, although the difference is relatively limited. Germans, for example, spend an annual EUR 87 million on daily groceries in the Eastern Netherlands, compared to only 42 million the other way around.62 … that German customers are familiar with the Aldi chain and Aldi product range due to its German origins. In addition, these customers are highly price sensitive compared to other supermarket customers. It is also important to note that Dutch customers visit Germany too to buy certain products, i.e. the purchase flows are bi-directional. The purchase flow from Germany to the Netherlands is considerably larger, however, than the other way around. Near the Belgian border, supermarket visits of Belgian …
