Cabinet Requests Input for New VAT Obligation for Platforms

The aim is to counteract the competitive distortion that currently occurs between small providers who do not pay VAT and large providers who do. Stakeholders can respond to the bill from October 3 to November 3, 2025, via www.internetconsultatie.nl/btw_platformeconomie.

The measure is part of a European package that modernizes the VAT system and is also being implemented in the Netherlands. This is necessary because new markets and business models have emerged due to digitization. The new European rules will apply to platforms that facilitate short-term rental of accommodations and passenger transport by road.

Individuals and small entrepreneurs who offer their services through these platforms do not always charge VAT at the moment, allowing them to offer their services at a lower price. This includes individuals who occasionally offer a service and are unaware of their VAT obligations or small entrepreneurs who are exempt from VAT under the small entrepreneurs scheme (KOR). Due to the wide reach of the platforms, this creates a competitive advantage over large providers who do charge VAT. This is particularly the case in accommodation rentals.

With the introduction of the new rules, these platforms must comply with VAT on the services offered through them from July 1, 2028, unless the provider does so themselves through the platform. This addresses the competitive distortion between small and large providers.

In the Netherlands, platforms for passenger transport do not cause a competitive distortion. This is because most providers through these platforms are entrepreneurs and therefore already pay VAT. As a result, these platforms generally only have an administrative obligation. This means that the platform must demonstrate that it concerns an entrepreneur who already pays VAT or an entrepreneur who falls under the KOR scheme and therefore does not have to pay VAT. If the platform cannot demonstrate that it concerns a (KOR) entrepreneur, then VAT is still owed on the services offered by this provider.

The cabinet attaches great importance to the input of stakeholders on the proposal so that it can be taken into account before the bill is submitted to the House of Representatives. For example, information on what (smaller) platforms need to keep and provide the administration. For this reason, an internet consultation will start on Friday, October 3, running until Monday, November 3. The legislation must come into effect on July 1, 2028.