Are you already taking into account the VAT increase in the Netherlands in 2025?
What a strange topic for us, isn't it? But we still want to pay some attention to this as it will affect many horse owners. Starting January 1, 2025, the reduced VAT rate (9%) on agricultural products not intended for human consumption will be abolished. There is little mention of this in the media, but for us as horse owners, this means a significant increase starting January 1, 2025! Therefore, in this article, we want to draw your attention to the upcoming change.
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11 June '24 • 1 min reading time
Still a low VAT rate
Currently, the low VAT rate is still applied to agricultural products, which means that bedding, roughage, concentrated feed, and supplements for horses have a VAT rate of 9%. But unfortunately, this is going to change in the Netherlands!
Increase of 12%!
All roughage, all concentrated feed, all bedding, and all supplements will see a 12% increase! Currently, these products have a VAT rate of 9%, but from January 1, 2025, this rate will go up to 21%. As a result, keeping horses will become much more expensive. And if you are not a horse owner, you might think, fine, it doesn't affect me. But the cost price of food will also rise significantly, which means we will notice this VAT increase in the supermarket as well! So it's not only our horse feed that will become more expensive; our own food will also see a significant price increase!
New rule only in the Netherlands
Unfortunately for us as Dutch people, this is not a European regulation. The increase in VAT on agricultural products from 9% to 21% is only valid in the Netherlands. This will especially cause problems in border areas, as agricultural products can still be offered at the low VAT rate across the border. It makes no sense to order them abroad, because according to European legislation, the Dutch VAT rate must still be applied. For example, if you order something in Germany, the German webshop must apply the Dutch VAT rate for delivery to the Netherlands.
Higher prices from January 1, 2025
This new legislation in the Netherlands means that prices will increase significantly from January 1, 2025. Unfortunately, our prices will also go up, not because we will make more profit, but because we also have to apply the new VAT rate to supplements. If you have the opportunity, stock up on hay, bedding, concentrated feed, and supplements in December!