Netherlands – Increase of VAT on the Short-Term Accommodation 

The Dutch Government submitted a proposal to increase the VAT rate on short-term accommodation rentals from 9% to 21%, effective January 1, 2026. The shift from reduced to standard VAT will inevitably affect the accommodation sector. 

The businesses that offer overnight accommodation will need to adjust their tax calculation logic to issue invoices at the new rate. The shift to the standard VAT rate will cover at least the following providers of short-term accommodation: 

• hotels
• holiday homes
• bed and breakfasts (B&Bs)
• guesthouses
• hostels
• accommodation rented through platforms
• furnished mobile homes

The draft bill is now pending approval by the Dutch Parliament.