Netherlands VAT Hike on Sports and Culture Rejected in 2025 Spring Memorandum

April 29, 2025

For months, a heated debate has been ongoing regarding the proposal to increase the applicable VAT rate for goods and services in the culture, media, and sports sector, from 9% to 21%. In the 2025 Spring Memorandum sent to the Lower House of Parliament, the Minister of Finance referred to this proposal, as well as many other vital tax matters.

Key Takeaways From 2025 Spring Memorandum

Although the 2025 Spring Memorandum includes and underlines several tax measures aiming to reform the government financing plan and expenditures, including personal income tax and payroll tax, gift and inheritance tax, reduction in energy tax for households, the Minister of Finance also addressed the proposal to increase the VAT rate on sports, culture, and media.

The Minister not only dismissed the possibility of increasing the VAT from 9% to 21%, but also highlighted that such a proposal will be permanently abolished. To cover the financial impact of this decision, the government will make limited adjustments to the way income tax brackets and tax credits are updated for inflation and price changes.

In other words, to compensate for this, the government will leave lower rates in effect, but taxable persons may experience a slightly slower increase in their income tax reliefs over time. By doing so, the government wants to balance the budget without imposing new taxes.

Conclusion

The 2025 Spring Memorandum represents an update on the government's budget for 2025 and the following years, making it a critical document that provides insight into the tax measures the government plans to implement in the foreseeable future. Therefore, the announcement that there will be no increase in the VAT rate for the sports, cultural, and media sector is significant.

However, the final budget for 2026 is part of the 2026 Tax Plan, which will be presented on Budget Day. Moreover, the Lower House of Parliament still needs to debate the proposed measures, and the voting on this decision will take place in the autumn.

Source: Ministry of Finance, KPMG

What was the proposed VAT change for sports, culture, and media in the Netherlands?

The proposal aimed to increase the VAT rate from 9% to 21% for goods and services in the sports, culture, and media sector.

Was the VAT hike on culture and media approved in the Netherlands?

No, the 2025 Spring Memorandum confirmed that the VAT increase proposal was dismissed and will not be implemented.

Why was the proposed VAT hike in the Netherlands rejected?

The government rejected the hike to protect access to cultural and sports services and instead opted to adjust income tax brackets more modestly to balance the budget.

How will the Netherlands offset the loss of revenue from rejecting the VAT hike?

To compensate, the government will slow the inflation-based increases to income tax brackets and tax credits rather than introducing new taxes.

Will there be any changes to VAT in the Netherlands in 2025?

As of the 2025 Spring Memorandum, the VAT for sports, culture, and media remains at 9%, with no other major VAT changes announced.

When will the final decision on the 2026 Dutch tax measures be made?

The final budget decisions, including potential tax changes for 2026, will be announced on Budget Day and debated by the Lower House in the autumn.

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