The Dutch Government considers abolishing VAT on public transportation and taxi services

The Dutch Government considers abolishing VAT on public transportation and taxi services

Netherlands

The decision to abolish VAT on public transport services is still pending. The current VAT is 9% and is fully eligible for VAT reclaim recovery if conditions are fully met.

According to the State Secretary for Finance, ‎applying a reduced or zero rate requires careful consideration. The Knowledge Institute for Mobility Policy (KIM) is currently working on an analysis of which instruments can be used to encourage a switch to public transport.

Completely abolishing VAT on public transport, including taxi transport, is expected to cost between 300 and 400 million. Introducing an extra 6% VAT rate on public transport is not technically feasible before 2026.

SourceWebsite of the Dutch Government

 

 

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