Dutch sales tax on books, concerts, theater tickets will rise from 9 to 21 percent

The four parties that negotiated a new governing coalition in the Netherlands plan to increase the value added tax on accommodations, books, concerts, museums, theater performances, and visits to events and attractions. These currently are subjected to a lower tax rate of 9 percent, but that will swell to the upper sales tax rate of 21 percent paid for most goods and services in the Netherlands, the PVV, VVD, NSC and BBB stated in their agreement.

The change should bring in a minimum of 1.2 billion euros annually starting in 2026, the coalition parties argued. The low 9 percent rate will only remain valid for campsites, cinemas, and some other forms of daily recreation.

How can literacy be a priority if VAT on books shoots up to 21 percent, booksellers wonder

Booksellers and publishers are very concerned about the plans. The increase from 9 to 21 percent will "lead to a price increase and a decrease in sales," said Dutch book distribution group CPNB, publishers association GAU and booksellers association KBp in a joint statement on Thursday.

"And this at a time when the importance of reading is recognized by everyone and reading skills are under pressure. The outline agreement presented today even states that reading skills will be given absolute priority and promoting Dutch language skills will also become a core task of the knowledge institutions in the Netherlands. higher education."

Dutch books are "the basis for these reading skills," the organizations said. "In essence, this is an extremely bad measure. We must all ensure that reading remains accessible to everyone. An increase in the VAT rate does not fit in with this."

Concerts and events will soon also face higher VAT on ticket sales

Similarly, event organizers' association VVEM said this change is "bad news for consumers." The increase in VAT will also cause financial problems for entrepreneurs, they argued.

"The higher rate makes for a less attractive price for visitors to festivals or a pop concert," said a spokesperson. "It concerns events for all Dutch people, from concerts by Tino Martin to Vrienden van Amstel," the annual concert series in Rotterdam. "If that becomes 12 percentage points more expensive, then that is a significant price increase."

That is why the VVEM wants to enter into discussions with the new Cabinet once it is formed, in the hope of talking them out of the change. "I don't think the new government yet realizes that this will have such a major effect on ordinary Dutch people who go to major events. It will come into effect in 2026, so we hope it will be phased out."

Sales tax increase on theatrical tickets will be painful for the public and producers

This will ultimately have consequences for the "general public," who will be very affected by the proposal, said theatrical producer association VVTP. The organization hopes that the next Cabinet will not actually implement the plan to increase the value added tax on theater tickets.

"This government said it wants to stand up for entrepreneurs. That is nice. But with a VAT increase, cultural entrepreneurs who work without subsidies are hit the hardest," the VVTP said.

The association said that most Dutch people go to theater productions which do not receive subsidies, such as musicals and other large productions. It's about musicals, which is where all levels of Dutch society go, including the well-known 'Henk and Ingrid.'" The two names are a reference to PVV leader Geert Wilders, who uses the names as a reference to the average model Dutch couple.

"It is important to keep a great night out affordable for everyone," VVTP argued.

Cinemas spared because of earlier deal

The Dutch Association of Cinemas and Film Theaters (NVBF) said it was pleased that the VAT rate for movie tickets will remain at 9 percent and will not be increased to 21 percent. "Cinemas have the advantage that an agreement was concluded years ago about low VAT on cinema tickets," said NVBF Chair Boris van der Ham.

"That works very well." This deal is part of an agreement between the Ministry of Education, Culture and Science, the Netherlands Film Fund, EYE, the NVBF and Film Distributors Netherlands (FDN), where it was stated that Dutch cinemas and film distributors will invest money in Dutch film productions for the general public in exchange for maintaining a low VAT rate.

One benefit this produced was the establishment of the Abraham Tuschinski Fund. Van der Ham said it was "nice" that the VAT rate on cinema tickets remains low.

"Cinema films are for the general public. Everyone goes to the cinema," Van der Ham said. He called it "very important" that cinema tickets do not become more expensive, and therefore remain affordable for a wider audience.