After the Dutch government failed to get the support of opposition parties in the Tweede Kamer, Finance Minister Eelco Heinen has agreed to scrap plans to increase VAT for theatres, museums, books and sports. 

Plans for Dutch VAT increase lack support

As a part of the budget for 2025, the government announced plans to increase VAT from 9 percent to 21 percent for accommodation, books, concerts, museums, theatre, sports and other recreational activities. However, these plans are now being thrown into question after the government struggled to get opposition parties on side.

GroenLinks-PvdA, D66, CDA, ChristenUnie, SGP, Volt and JA21 came together to submit a joint motion urging the cabinet to find another source of income that the VAT increase would have provided. Heinen had no choice but to concede and is now looking for another way to cover the 1,2-billion-euro hole in the budget.

The VAT increase that was set to be introduced in 2026 will likely not be carried through for books, theatre, museums and sports, but will still be applied to accommodation and hotels, which could have an impact on tourist spending.

Dutch government debates plans for taxes

The proposed tax hikes were unpopular right out of the gate among Dutch residents and opposition parties. The coalition parties do not have a majority in the House of Representatives, which means they have to work together with the opposition parties for plans to be approved. 

However, the VAT hike is still not completely off the table. The cabinet will examine other options for making up the lost revenue, but has warned that if no suitable alternative can be found, they may be forced to push through the measure. There is pressure to get the Tax Plan through the Tweede Kamer so that there is enough time to arrange new rules for taxes and rates for next year. 

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