VAT changes from 1 January 2025

From 1 January 2025, a number of things will change in VAT. The Tax Authority has put the most important changes in a summary. At the moment, the Tax Plan 2025 has not yet been adopted by the House of Representatives. Therefore, changes such as the VAT rate adjustments are not yet listed on the Tax and Customs Administration's website.

21% VAT on certain agricultural goods
From 1 January 2025, the VAT rate on the supply of certain agricultural goods will go up from 9% to 21%. These include non-food grains and pulses, seed potatoes for growing vegetables and fruits, (poultry) cattle and offal, beetroots, agricultural and horticultural seeds, roundwood, straw, fodder, flax and wool.

Place of service in virtual services
Do you provide a cultural, artistic, sporting, scientific educational or entertainment service? And is this service virtual? From 1 January 2025, the service will be taxed in the country where the customer lives or is established. This means that the VAT rules of that country will then apply.

Amendment of additional margin scheme
From 1 January 2025, the so-called additional margin scheme will expire. Have you, as a reseller (trader), purchased antiques, art or collectibles at a reduced rate, imported or acquired intra-community? If so, you can no longer apply the margin scheme when selling these goods. If these goods were not sold before 1 January 2025, you may deduct the input tax on them in the first period of 2025.

VAT on service charges
When letting property, the landlord charges service charges in certain cases. For example, for cleaning, repairs, or the supply of gas, water and electricity. The question is whether these service costs are subject to VAT or exempt from it.

Two options will apply from 1 January 2025:

• service costs are not included in the rent
  In that case, these costs with VAT will appear separately on the invoice. However, tenants must be able to choose the service provider themselves or jointly. And when it comes to actual consumption of, for example, gas, water and electricity, tenants must have an individual meter.
• service costs are included in the rent
  If the rental is subject to VAT, so are the service charges. And if the rental is exempt from VAT, so are the service charges.

Changes to the small business scheme (KOR)
From 1 January 2025, there are a number of changes to the KOR. You can read more about this in From 1 January 2025: Changes to KOR and introduction of EU KOR.

Introduction of the small business scheme in the EU (EU KOR)
On 1 January 2025, the EU KOR will be introduced. This is a new VAT exemption. The EU KOR will allow you to get a VAT exemption for 1 or more EU countries where you do business from 1 January 2025. You can read more about this in Small business scheme in the EU (EU KOR).