Netherlands: Dutch Considering a Zero Percent Value Added Tax on Vegetables and Fruit

  |   Attaché Report (GAIN)   |   NL2022-0066

A Value Added Tax (VAT) of zero percent for vegetables and fruit was part of the 2021 Dutch government's coalition agreement. Realizing this VAT reduction, however, has been met with several challenges pertaining to efficiency, efficacy, and feasibility. These challenges as well as the implications of the VAT reduction are described in this report. Further government research is currently underway, with preliminary conclusions expected by January 2023. If found viable, the VAT reduction could be implemented as soon as 2024.

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