VAT changes as announced in the Dutch Tax Plan 2019
As mentioned in my earlier published article, the lower Dutch VAT rate will increase to 9% as from January 1, 2019. The lower rate currently applies to, for example food, water, medicines, works of art, books and certain services like, for example, public transport, hotels, hairdressers and repairs of bikes/clothes and shoes.
In addition the VAT sports exemption is currently applicable for services supplied by sports organizations to its members will be extended to non-members.
Furthermore, as from January 1, 2019 the Netherlands will have to introduce some e-commerce changes like all other EU Member States. Providers of digital services (electronic, telecommunication and broadcasting services) to consumers are currently obliged to charge VAT at the rate applicable in the country where the consumer is established, has its permanent address or where the consumer usually resides. The foreign VAT can be reported through the Mini One Stop Shop System (MOSS). As from next year, if the digital services turnover does not exceed 10.000 Euro per year, VAT at the rate applicable in the Member State of establishment can be charged (option). In addition the invoice rules of the Member State of establishment can be applied.
And another simplification, if the turnover related to digital services to consumers does not exceed 100.000 euro, one piece of evidence to proof the location of the customer/consumer will be enough. More changes in this area are planned for 2021.
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