Dutch gov't backs off: No VAT hike on books, culture, sports

The VAT increase on theaters, museums, books, and sports in 2026 is scrapped, Minister Eelco Heinen of Finance conceded during a parliamentary debate on the government’s Tax Plan on Thursday, NOS reports. The opposition parties forced the Cabinet to back off. Without their support, the government won’t get its Tax Plan through the Senate.

Increasing the VAT rate for museums, books, theaters, and sports from 9 percent to 21 percent in 2026 is one part of the Tax Plan. The measures elicited fierce resistance from the involved sectors and opposition parties from the start.

On Thursday, opposition parties GroenLinks-PvdA, D66, CDA, ChristenUnie, SGP, and JA21 submitted a joint motion calling on the Cabinet to find an alternative to the VAT increase. Heinen conceded and agreed to scrap the increase on theaters, museums, books, and sports. He’ll find alternative sources of income for the 1.2 billion euros the VAT hike would have raised.

That excludes the VAT increase for accommodations and hotels. That part of the VAT hike is still happening and was not part of Heinen’s commitment to the opposition.

The opposition parties said they wanted to have the commitment “in black and white” by this afternoon.

The government is under time pressure to get its Tax Plan through the Tweede Kamer, the lower house of the Dutch parliament. The Tax Plan regulates the vast majority of the State’s income, which is needed for its expenditure. In order for the Tax Authority and accounting companies to have enough time to arrange the new tax rules and rates for next year, parliament must vote on the Tax Plan today.

The Eerste Kamer, the Dutch Senate, must also handle the Tax Plan before the end of the year. The PVV, VVD, NSC, and BBB coalition does not have a majority in the Eerste Kamer, which is why it must be willing to work with opposition parties.