Raise of low VAT rate

The low VAT rate will be raised from 6% to 9%. The proposal has been officially approved by the Dutch First and Second Senate. This will take effect on 1 January 2019. Please make sure that your cash register system is adjusted in time.

A simple example:

If the sales prices are adjusted

Current monthly turnover of 18,000.00 euros including 6% VAT

At this time:
Net sales excl. 6% VAT
€ 18,000.00: 1.06 = € 16,981.13

If the price is adjusted on 1 January 2019, the turnover increases:
€ 18,000.00: 1.06 x 1.09 = € 18,509.45.

Net sales excl. 9% VAT
€ 18,509.45: 1.09 = € 16,981.13.

In other words, the turnover excluding VAT from before the adjustment remains unchanged.

Therefore, if you adjust the price, the increase in the tax rate will not result in a decrease in your net sales.

If the sales prices are not adjusted:

Current monthly turnover of 18,000.00 euros including 6% VAT

At this time:
Net sales excl. 6% VAT
€ 18,000.00: 1.06 = € 16,981.13

Net sales excl. 9% VAT
€ 18,000.00: 1.09 = € 16,513.76

In other words, the turnover excluding VAT before the adjustment is reduced by € 467.37.

Therefore, if you do not adjust the price, the increase in the tax rate will result in a loss for you of € 467.37.

 

More information can be found here:

https://www.rijksoverheid.nl/onderwerpen/btw-omzetbelasting/verhoging-lage-btw-tarief

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Published on: November 27, 2018

Updated on: December 20, 2018