July VAT cut to follow excise duties cut proposal as May inflation hits 8.8%; energy inflation 105%
Proposals to cut VAT on electricity from 21% to 9% between 1 July until 31 December 2022 have now been approved by both houses of the Dutch Parliament. This comes as inflation reached 8.8% in May – although this was a slight drop from April’s record.
Original plans for energy and duties cuts as inflation rises.
The Dutch Cabinet has approved a petrol excise duties cut on fuel from 1 July 2022. It will also cut VAT on energy (natural gas, electricity and district heating) from 1 July 2022 until 31 December 2022 from the standard Value Added Tax rate of 21% to the reduced rate of 9%. These measures will cost €2.8 billion, which will be partially paid for by increased revenues from the Dutch Groningse oil fields.
Many other EU states cutting VAT on fuel.
EU states reform VAT rate freedoms for economic crisis
From April 2022, EU member states agreed new reduced EU VAT rate setting freedoms .
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