Netherlands consults on early 2028 ViDA Digital Platforms

The Netherlands is positioning itself as an early mover in implementing the platform economy reforms of ViDA. By opting for the optional 1 July 2028 start date, it aims to address competitive imbalances in accommodation rentals, formalise compliance in passenger transport, and demonstrate leadership in VAT modernisation.

This consultation marks one of the first concrete national steps toward implementing the VAT in the Digital Age (ViDA)reforms, a package of measures designed to modernise the European VAT framework and adapt it to a digitalised economy.

The EU Context: VAT in the Digital Age (ViDA)

The European Commission presented its ViDA package on 8 December 2022 (COM(2022) 701 final). Pillar 2, Platform Economy, extends the “deemed supplier” model to services provided via digital platforms.

The platform economy pillar specifically addresses short-term accommodation rentals and passenger transport by road, sectors that have grown significantly in recent years and where VAT compliance has proven difficult to enforce at the level of small or occasional providers.

VAT Deemed Supplier Mechanism

The reform builds on the model already applied in the 2021 e-commerce package for goods. Under the “deemed supplier” rules. The platform is deemed to receive and supply the underlying service (Article 28 VAT Directive). The platform, not the underlying provider, becomes liable for charging and remitting VAT. The mechanism applies only where the underlying provider is not otherwise VAT-liable through the platform.

The EU has set a two-stage timetable for implementation:

• Optional application from 1 July 2028, and
• Mandatory application by 1 January 2030.

Dutch Platform Economy consultation draft

The Netherlands has chosen to move early, targeting the optional July 2028 start date. The consultation focuses on two areas of platform activity:

1. Short-term Accommodation Rentals

• Platforms such as holiday rental portals will be deemed suppliers.
• They will be responsible for charging VAT on transactions unless the provider itself accounts for VAT through the platform.
• Rationale: address a long-standing competitive imbalance. At present:
  • Professional providers (e.g. hotels, professional landlords) must charge VAT.
  • Small providers, occasional landlords, or those under the small entrepreneurs scheme (Kleineondernemersregeling – KOR) often do not.
  • This enables cheaper pricing via platforms, creating distortions.

By making platforms VAT liable, the Netherlands seeks to ensure neutrality across providers while also securing VAT revenues that are currently difficult to collect from fragmented small suppliers.

2. Passenger Transport Services

• The Netherlands identifies no structural distortion of competition in the passenger transport sector.
• Most drivers using platforms (e.g. ride-hailing services) are already VAT-registered entrepreneurs.
• Accordingly, platforms in this sector will bear an administrative obligation rather than full VAT liability.
• Specifically:
  • Platforms must document whether each driver is VAT registered or exempt under the KOR.
  • If the platform cannot prove the provider’s status, it becomes liable for VAT as a fallback.

This distinction illustrates the Dutch government’s attempt to tailor implementation to national market conditions while staying within the EU framework.

Administrative & Compliance Implications

The consultation specifically seeks stakeholder input on practical compliance burdens, especialy for smaller platforms.

For Digital Platforms

• VAT determination systems must be developed to establish whether a transaction is VAT-liable.
• Record-keeping obligations will expand, particularly in the transport sector where platforms must document providers’ VAT status.
• Invoicing obligations will shift from many small providers to a smaller number of large platforms, which may improve efficiency but impose upfront IT and compliance costs.

For Providers

• Small providers and individuals may face fewer direct VAT obligations, as platforms will handle compliance.
• However, prices for consumers are likely to rise once VAT is embedded in transactions, reducing the competitive edge previously enjoyed by non-VAT-liable providers.
• Professional providers stand to benefit from greater neutrality, as their VAT obligations will no longer leave them at a disadvantage.

For the tax authorities

• Enforcement becomes simpler: collecting VAT from a handful of large, established platforms is easier than monitoring thousands of small landlords and drivers.
• Revenue certainty is expected to increase, though clear administrative guidance will be needed to ensure platforms can fulfil evidentiary requirements.

Policy Rationale

The Dutch government identifies several guiding principles:

• Neutrality: Align VAT treatment across providers regardless of size or formality.
• Simplification: Reduce complexity for small entrepreneurs while consolidating VAT liability with larger entities.
• Future-proofing: Align domestic VAT law with the EU ViDA framework ahead of the mandatory 2030 deadline.

The Cabinet also frames the reform as a response to digitisation-driven market changes, where traditional VAT rules struggle to capture fragmented, peer-to-peer supply models.