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Zero VAT on fruits and vegetables from January 1, 2024 in the Netherlands

by Tatyana Ivanovich
December 23, 2022
in AGROTECHNOLOGY
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Zero VAT on fruits and vegetables from January 1, 2024 in the Netherlands

The cabinet hopes to introduce the zero VAT rate on fruit and vegetables on 1 January 2024, State Secretary Marnix van Rij reports. ‘That is the first possible date that this is technically possible. An implementation test will be used to determine whether this is also technically feasible.’

The State Secretary for Taxation and the Tax and Customs Administration thus answers the question from chairman Jan Anthonie Bruijn of the Senate. He wanted to know how Van Rij interprets the motion of Niko Kofferman of the Party for the Animals. He asked the State Secretary to abolish VAT on fruit and vegetables as soon as possible. He had to start with unprocessed fruit and vegetables, after which VAT will also be abolished for other healthy fruit and vegetable products.

According to the State Secretary, a faster introduction than before 1 January 2024 is not possible in a careful manner. There are three reasons for this, he says. ‘We need to define what the term ‘unprocessed’ means. The results of the ongoing research into possible demarcation variants therefore remain relevant. The cabinet does not want a step-by-step approach, but wants to implement this measure in one go.’

Understandable and doable

He believes it is important for entrepreneurs, the Tax and Customs Administration and consumers that an understandable and feasible measure is arrived at on the basis of a sound process. ‘Finally, the introduction of a VAT zero rate on fruit and vegetables entails a coverage issue. Depending on the demarcation of fruit and vegetables, this amounts to losses of the order of structurally 1 billion euros per year.’

This decrease in tax revenue and how to deal with it is being investigated by an external party. ‘It is very important to exercise due care and to await the results. This contributes to the design of a VAT zero rate on fruit and vegetables in a feasible, legally sustainable and effective manner, taking into account the health objective of the measure.’

Results expected early 2023

The research is currently in full swing and the results are expected at the beginning of 2023, says Van Rij. He will then inform the House whether a legislative process can be started to introduce a VAT zero rate on fruit and vegetable products from 1 January 2024.

A source: https://www.nieuweoogst.nl

Tags: Netherlandsvegetables
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