VAT increase culture, sports and takeaway postponed

Why is the VAT increase being delayed?

Among other things, the Council of State questioned the distinction between different types of cultural events.

For example, a performance of classical music would remain under the 6% rate, while a pop concert would be taxed at 12%. According to the opinion, this distinction is insufficiently objectively and legally substantiated.

The proposed regulations also proved problematic for takeaway meals.

The criteria for determining which products would be subject to 6% or 12% VAT were too vague and difficult to apply in practice.

For these reasons, this part of the reform will be postponed for the time being.

Which VAT increases do go ahead?

Not all planned changes are off the table. As of March 1, the following increases will take effect:

• Lodging (hotel stays, vacation rentals, campsites): from 6% to 12%

• Pesticides: from 12% to 21%

The postponement does not mean a complete abandonment of the reform, but it does mean a thorough reworking. The coming period will reveal how the government plans to refine the regulations to arrive at a workable proposal.

Have questions about the impact on your sector?

The postponement does not mean that the VAT reform will be dropped for good. On the contrary: the government will have to thoroughly rework the regulation. The coming period will reveal how the government intends to refine the regulations to arrive at a workable proposal.

For entrepreneurs in:

• culture and event organization

• sports clubs and recreation sector

• hospitality and takeaway

• hospitality and tourism

it remains important to prepare scenarios.

After all, a change in VAT rate has a direct impact on:

• your pricing

• your gross margin

• your competitive position

• your cash flow

Would you like to know how these announced measures will affect your company concretely? Then don't hesitate to contact our experts using the form below.