The Dutch Minister of Finance announced which measures have been included in the Austerity Budget Program to the European Commission. With regard to value added tax (VAT), there will be a rate increase to 21% beginning October 1, 2012. The lower VAT rate of 6% stays at its current level and will be reinstated for the performing arts, which had expired January 1, 2011. With regard to the real estate transfer tax, it has been announced that the temporary rate of 2% for the acquisition of property will become definite.
No laws have been passed yet on these points, so there is a possibility that these proposed measures may yet change. The content of any transitional arrangements is also not yet known. Ryan will keep you informed as soon as more information is known about the proposed law or the transitional arrangements.
TECHNICAL INFORMATION CONTACT:
Suzanne C. den Breems
+31 (0) 72 540 1202