Dutch leaders under fire over VAT plans for books and cultural events

Proposals by the Netherlands’ new government to increase the VAT on books, museum visits, hotel bookings, and sports events, have provoked fierce opposition from the country’s cultural and leisure sectors.

The plans, which will come into effect in two years’ time (2026), would see VAT charges on a wide range of leisure activities rise from 9% to 21%.

The Dutch government, led by newly elected Prime Minister Dick Shoof, who succeeded Mark Rutte in May, believes the increase will generate €2.2bn a year for the treasury, to fund social programmes and infrastructure projects.

But the tax hike has been slammed by leaders of the country’s economically important cultural and leisure sectors, who argue that the move will damage an industry still recovering from the effects of the pandemic.

Culture is a big earner for the economy. In 2022, tourism contributed €96bn to the Dutch economy, €36.5bn more than in 2021, according to Statistics Netherlands (CBS). 

But much of the increase was driven by domestic tourists, who’ll be hardest hit by the VAT increase. Domestic tourists spent €65bn, while foreign tourists contributed around €34.5bn.

In June, a broad coalition of Dutch cultural organisations – including the Dutch Football Association (KNVB), Eredivisie, the top professional football league, the Culture Federation, the Pop Coalition, and the Dutch Association of Journalists (NVJ) – kicked off a campaign to pressure the government to rethink its tax plans.

Strong criticism of the decision

The group took out a full-page advert in every national and regional newspaper across the Netherlands decrying the tax increase with the slogan: No Higher VAT.

Opposition is growing. In a statement, the coalition said: “The proposed increase in the VAT rate will inevitably lead to higher prices, which will put pressure on the accessibility and affordability of sports, media, books, culture, and catering for the public.

“It affects everyone in the Netherlands in daily life and in several areas. It is an additional burden on the valuable free time, club life, curiosity, and (mental) health of every Dutch person.”

Dutch publishers also round on the government

Johan van Oort, chairman of the Dutch Publishers Association said: “Books are not a luxury item; they are a crucial part of our culture and our education system. Increasing the VAT on books will create an unnecessary financial burden on readers and further widen the gap between those who can afford to buy books and those who cannot.”

Johan Schrijver, director of the Amsterdam Concert Hall, said: “The cultural sector is still recovering from the losses we suffered during the pandemic.

“Raising VAT now risks undoing the progress we’ve made in rebuilding audiences. If ticket prices rise, we will see fewer attendees at concerts and cultural events, which will ultimately hurt our institutions and the artists we support.”

Supporters of the four-party coalition government’s (PVV, VVD, NSC, and BBB) plans argue that Dutch cultural institutions and publishers should develop alternative revenue streams to mitigate the VAT increase.

They highlight the potential of digital subscription models as a way to offset the impact of rising costs for physical products, such as books and event tickets, and challenged the sectors to develop modern, flexible approaches to help them adapt to shifting market dynamics.

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The Dutch cultural sector is one the strongest in Europe, according to EU statistical body Eurostat. Employment in the country’s cultural and creative industries is among the highest in the EU, with almost 3% of the workforce operating in the sector.

Malta boasts the highest share at 5.3%, with Luxembourg (0.4%), Poland (0.5%), and Czechia (0.8%) the lowest.