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Netherlands energy VAT cut to 9% until Dec 2022

July VAT cut to follow excise duties cut as energy inflation hits 77% in February

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.

Dutch inflation in February hit 6.2%.  Energy was 77%, down slightly on January’s levels. Many other EU states cutting VAT on fuel.

The government has allocates €2.8 billion for purchasing power recovery; it will provide low-income citizens with up to €800 subsidy for energy bills instead of the previously announced 200 euros

MP’s propose gas and electricity cut as energy inflation soars to 77%

Dutch Members of Parliament had submitted a Bill to cut the Value Added Tax from the standard rate of 21% to 0%.  This would apply to domestic, household consumers of energy, including gas and electricity.  It would apply retrospectively from 1 January until 31 December 2022.  There would be a facility to extend it further to 2023.  The Bill does not yet have government backing.

Dutch Ministers have made commitments to act following the publication of new forecasts which suggesting spending power will shrink by 2.7% this year, largely due to higher energy prices.

EU states reform VAT rate freedoms for economic crisis

In December 2021, EU finance minister agreed new reduced EU VAT rate setting freedoms which should come into place before April 2022.

The Finance Ministry is planning to put forward the measure to the Federal government to help combat inflation spike. Belgium has in the past cut the VAT rate to 6% on energy fuel.

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