Netherlands

Introduction of the ‘plastic tax’ 2023 is experiencing an exponential rise in Environmental, Social and Government (ESG) taxes. As the name suggests, these taxes have a marked agenda: to further wider ecological and conservation affairs.  This year has already seen both Poland and Germany establish their own vision for implementing ESG taxes. Predictably, this phenomenon is set to permeate neighboring countries on the continent.   Netherlands is the latest country to announce its own initiative in this regard.   From 1 July 2023, residents must pay an extra amount for single-use disposable containers that include plastic. This measure will be extended yet further from 1 January 2024, where disposable cups and containers that contain plastic will be prohibited.   These measures hold the obvious benefit of increasing recycling and nurturing positive environmental behaviors.   The growth of ESG taxes is set to become an integral part of Kofax’s compliance and development plans and feature alongside country e-invoicing mandates and VAT rate changes. Each ESG tax is unique and merits its own considerations. Kofax is acutely aware of the significance of ESG taxes and the associated obligations they place on suppliers and buyers. Kofax is committed to considering its responsibilities in respect of any ESG taxes, if applicable.  

Call to simplify reduced VAT rates While the discernible trend to reverse VAT rates is appearing to be more commonplace, there is an element of predictability associated with the practice, as countries attempt to regain a sense of economic stability which was only really apparent prior to the pandemic. Tax rates have a direct correlation with wider economic and societal agendas. As a result, we can expect multiple countries to adjust their VAT rates in the coming months. As part of its spring Memorandum, Netherlands will re-visit its 9% reduced VAT rate and its zero-rated category, with a means to simplify their application. The Memorandum makes some stark admissions, including an analysis of whether the reduced rate actively achieves its desired aim of encouraging spending and general support for specific sectors. The Memorandum also candidly concedes that wealthiest households benefit almost twice as much as other households from reduced rates. Such conclusions indicate that the application of reduced rates must be re-considered, considering a more equitable tax distribution. Netherlands is a compliant territory for Tungsten Network. Our portal solution incorporates all valid VAT rates in the country and we will continue to monitor any tax rate changes in the country.

Initiative Bill for Groceries Inflation in the current market has a direct correlation with fluctuating VAT rates.   The Netherlands has submitted an Initiative Bill, which would seek specifically to amend the OB Act 1968 and the BES Tax Act.   Through this modification, it is expected that foodstuffs will then be included under Table 11 of the 1968 OB Act for 12 months after having come into force, which effectively means the application of a nil VAT rate under Article 9, paragraph 1, part b, OB Act 1968.   The Netherlands is a compliant territory for Tungsten Network and we support all valid VAT rates in the country.    

Cessation of SI-UBL 1.2 standard The Dutch government has stated that from 1st January 2023, it will no longer support SI-UBL 1.2. SI-UBL 1.2 was announced as an optional format on 1^st July 2022. From 1^st January 2023, entities sending documents to the Dutch central government can use the following standards:

• NL-CIUS
• PEPPOL BIS.

The identifier OIN:0190 must be used when transitioning to these new standards.

Incentive to cut VAT on fruits and vegetables Coalition parties have been putting forward the proposal to reduce VAT on fruits and vegetables. As we have seen with ‘green’ initiatives both in Europe and globally, fiscal measures are often intrinsically linked to social and political reforms. Coalition parties in the Netherlands are hoping that reducing VAT will help curb obesity and other health-related illnesses in the country. Proposals for a reduced rate are yet to be carved into law and are currently being discussed. Tungsten Network is continually reviewing tax rate changes in Europe. The Tungsten Web Form facility currently includes the option to select all valid Dutch VAT rates. We will ensure that any new valid VAT rates, if applicable, will be integrated as part of our portal solution.

VAT reduction for energy, natural gas and electricity and district heating Rising inflation across Europe has forced many countries to assess the deployment of VAT rates, particularly in relation to energy. Netherlands is no exception, and a combination of socio-economic factors has meant that the government has addressed ways it can compensate low- and middle-class families affected by rising costs. To this effect, the VAT on energy will be reduced from 21% to 9%.

Joint incentive to reduce the VAT gap Belgium, Netherlands, and Luxembourg representatives have convened to discuss plans to reduce the VAT gap. Although Continuous Transaction Controls (CTC) have proven to be extremely popular in the past few years, with a means to reducing the VAT gap, the VAT gap remains high- 134 million Euros was lost in revenue the EU in 2019. Shared borders and economic interests between the 3 countries have prompted the countries to work together to reduce this gap yet further- a key factor in the implementation of e-invoicing mandates.