In the previous issue of the IVA Newsletter, we promised to inform the members of IVA whether or not the reduced rate for renovation and repair of (private) dwellings – older than two years – has been extended.
In the previous issue of the IVA Newsletter, we promised to inform the members of IVA whether or not the reduced rate for renovation and repair of (private) dwellings – older than two years – has been extended.
The parliament has rejected a motion of one of its members, to maintain this specific reduced rate. As per 1st July 2015, this reduced rate no longer applies and the standard VAT rate of 21% is applicable for such renovation and repair supplies.
Along with the abovementioned development, the government proposed to remove in general the reduced rate from the Dutch VAT Act. It is part of a package of proposals, affecting the revision of the tax legislation structure in the Netherlands. In fact, only for groceries the VAT rate of 6% would be applicable. Barbers, hotels, but farmers too would have been affected by those proposed changes in legislation. However, several political parties resisted. The State Secretary of Finance has subsequently withdrawn the proposal.
Gijs Otten
VATForce
