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

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.

Source: Website of the Dutch Government