From 1 January 2026, VAT on overnight accommodation in the Netherlands will jump from 9 % to 21 %. This article unpacks the policy, the projected economic impact, and practical steps hotels can take to stay competitive.
Introduction
The Dutch government will abolish the reduced 9 % VAT (BTW) rate for overnight accommodation on 1 January 2026, pushing the sector into the standard 21 % bracket. Camping sites remain at 9 %, but hotels, B&Bs, guesthouses, holiday homes, hostels, and short-stay rentals will all be affected. (business.gov.nl)
1. Current VAT Landscape and Planned Change
| Rate | % | Main Examples |
|---|---|---|
| Standard | 21 % | Most goods & services, soon all accommodation |
| Reduced | 9 % | Food, medicine, books, current lodging rate (until 31 Dec 2025) |
| Zero | 0 % | Exports, intra-EU supplies, international transport |
The 2025 Tax Plan confirms that the reduced rate for accommodation (except camping) disappears from 2026. Similar abolitions hit cultural goods/services and commercial sports. (pwc.nl, pwc.nl)
2. Policy Rationale and Timeline
| Date | Measure | Source |
|---|---|---|
| 1 Jan 2019 | 6 % → 9 % reduced rate | Dutch Budget 2019 |
| 1 Jan 2025 | Certain agricultural goods 9 % → 21 % | Tax Plan 2024 |
| 1 Jan 2026 | Accommodation 9 % → 21 % (camping exempt) | 2025 Tax Plan (pwc.nl) |
Government goals:
- Revenue: +€2 billion per year (all sectors combined) (pwc.nl)
- Simplification: fewer special rates, easier administration.
- Level playing field: align tax on hotels with other “luxury” expenditure.
3. How Much Will Prices Rise?
3.1 Pass-Through Estimates
| Study | Assumed Pass-Through | Expected Demand Drop |
|---|---|---|
| Significant APE (2025) | ~75 % | −6.2 % overnight stays |
| KHN (Royal Horeca NL) | Up to 100 % → 30 % fewer guests in worst case | (hotelvak.eu) |
| ABN AMRO (2024) | Full pass-through hurts tax revenue; demand very elastic | (hotelvak.eu, vatupdate.com) |
Key takeaway: Hotels will likely add 5 – 11 % to room prices, not the full 12 %, to protect occupancy. Border hotels and budget brands will absorb more; luxury and business hotels can shift more onto guests.
3.2 Revenue & Margin Pressure
- A 100-room mid-scale hotel charging €120 ex-VAT today would raise gross price to ±€133 to keep the same net revenue — if demand holds.
- If occupancy falls 6 %, the same hotel loses ≈€230 k annual revenue even after the price rise (based on STR 2024 occupancy averages).
4. Competitive Dynamics
- Border Leakage – Tourists may book in Germany or Belgium (still 7 % VAT on lodging) and commute to Dutch attractions.
- City vs. Leisure Markets – Amsterdam’s dependence on international business travel gives some pricing power; rural & holiday parks face tougher price sensitivity.
- Dynamic Pricing & Forecasting – Revenue-management systems must recalibrate elasticity models; unsold rooms represent sunk cost every night.
5. Operational & Compliance Challenges
- Transitional Rules – Pre-paid vouchers or deposits straddling 2025/26 must apply 21 % VAT to the consumed stay, negating early-booking work-arounds. (pwc.nl)
- Accounting Systems – PMS and ERP software need new VAT codes by Q4 2025.
- Contracts – Revisit corporate rate agreements and OTAs (Online Travel Agencies) to reflect gross vs. net prices.
6. Strategic Responses for Hoteliers
| Strategy | Actions |
|---|---|
| Value Bundles | Combine room with F&B, spa, or tickets (still at 9 % where applicable) to cushion headline rate. |
| Cost Control | Energy efficiency, housekeeping automation to offset margin squeeze. |
| Market Diversification | Target segments less price-sensitive (events, conferences, long-stays). |
| Lobbying & Coalition Building | Work with KHN and local governments to seek border-region relief or phased introduction. |
| Early-Bird Incentives | Offer 2025/early-2026 packages booked before the cut-off to stabilise forward bookings (not exempt from 21 %, but can lock demand). |
7. Implications for Guests & Travel Intermediaries
- Expect Higher All-In Prices from 2026; shop around border areas or consider camping alternatives.
- Corporate Travel Budgets should revise per-diem hotel caps by ≈10 %.
- Travel Agents & OTAs must display gross rates inclusive of 21 % VAT to avoid consumer-law penalties.
Conclusion
The Dutch VAT hike is significant: from 9 % to 21 % represents the largest single regulatory cost jump for the hospitality sector in over a decade. Economic modelling suggests most—though not all—of this cost will land on guests, but hotels risk a measurable fall in occupancy, particularly in price-sensitive and border regions. By tightening cost control, re-packing value, and communicating early with partners and guests, hoteliers can mitigate the shock while policymakers pursue their fiscal and simplification goals.
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