Digital platforms will be liable to pay VAT on rentals and transport

Do you use a digital platform to offer short-term accommodation rentals or passenger transport? You will be subject to new VAT rules. Platforms will become liable for VAT on the services offered and provided through them.

What changes?

Do you rent out accommodation for at most 30 nights? Or do you have a platform with which you facilitate passenger transport by road? Then the platform must pay VAT (btw) on those offers. This is part of ViDA (VAT in the Digital Age): new EU rules to better align the VAT system with the digital economy.

Changes for platforms that facilitate short-term rentals

• The platform will be repsonsible for VAT. Platforms facilitating short-term accommodation of no more than 30 nights, have to pay VAT on the services provided via their platform.
• Do you already pay VAT as the provider? Then you must report this to the platform and supply it with your VAT number (btw-nummer). In that case the platform is not responsible for the VAT.
• The platform must keep track of your details. They must check properly whether you pay VAT yourself and keep this information securely.

Changes for platform that facilitate passenger transport

For taxi services and other road passenger transport additional rules apply:

• Do you work as a driver via a platform and do you take part in the Small businesses scheme (kleineondernemersregeling, KOR)? Then you must report this to the platform and provide them with your VAT number. The platform is not responsible for the VAT in that case.
• The platform must be able to demonstrate that you make use of the KOR. They must keep track of which drivers use the KOR.

Why this change?

This change in EU VAT rules is intended to ensure fairer competition. Currently some providers of accommodation via a platform do not pay VAT, for example because they take part in the Small business scheme (KOR) or only rent out accommodation occasionally. This gives them an advantage over traditional hotels and taxi companies that do pay VAT. Under the new rules, one party always pays VAT: either the platform or the provider itself.

For whom?

• platforms that facilitate short-term accommodation rentals
• platforms that facilitate passenger transport by road
• entrepreneurs that offer services via these platforms
• private individuals who rent out accommodation occasionally

When?

• The Netherlands must incorporate these new rules into Dutch law no later than 1 July 2028.
• The new rules will take effect no later than 1 January 2030. 

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Lower and Upper Houses (Tweede en Eerste Kamer) of parliament. After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch) the law can take effect.