Hotel sector VAT increase off the table: 9 per cent stays

The amendment on increasing the VAT rate for the hotel sector was rejected in the House of Representatives on Thursday evening. The proposal, tabled by Pieter Omtzigt (NSC) and co-signed by three other MPs, proposed that the reduced rate in sales tax would expire from 1 July 2024, increasing the rate from 9 to 21 per cent.

The proposed increase faced opposition from the hotel industry. Trade association KHN therefore made an urgent appeal to the House of Representatives to look critically at the implications of a possible increase before any decisions would be taken that could hugely damage the hotel and other related industries.

KHN president Marijke Vuik reacted happily: "We are hugely pleased that the Lower House has heeded our call to retain the current VAT rate for lodging. The proposed increase from 9 per cent to 21 per cent from 1 July 2024 would not be sustainable for the vulnerable hotel sector, which is still recovering from the corona pandemic."

"Fortunately, now that the proposed amendments have not been adopted, we can together put the focus back on reviving the sector and managing tourism growth. There are plenty of opportunities, not only nationwide, but also in cooperation with local residents and municipalities at the local level."

"The proposed increase from 9 per cent to 21 per cent from 1 July 2024 would not be sustainable for the fragile hotel sector, which is still recovering from the corona pandemic."

KHN president Marijke Vuik

The rejected amendment had previously been tabled by Pieter Omtzigt (NSC) and co-signed by MPs Pieter Grinwis (ChristenUnie), Mahir Alkaya (SP), and Chris Stoffer (SGP).