The Tax Plan 2025 proposes several sweeping changes related to VAT. These changes affect, among others, entrepreneurs in the real estate sector and providers of accommodation and cultural services.
The Tax Plan 2025 proposes a number of important changes in the field of sales tax (VAT), which will come into effect (only) from 1 January 2026. These changes concern both services to immovable property and the removal of the reduced VAT rate for certain goods and services.
Extension of the revision scheme for investments
The first change concerns the introduction of a revision scheme for investment services to immovable property. Currently, the revision scheme only applies to purchase and (up)supply of (un)movable investment goods, but from 2026, this will be extended to services that have a multi-year character and exceed a threshold amount of €30,000. Think not only about renovations, but also maintenance. There is therefore no need to be an ‘investment’ eligible for investment deductions for income tax or corporation tax.
This means that from 2026, entrepreneurs will have to review VAT on investment services over a period of five financial years, depending on any changes in the actual use of the service for taxed or exempt supplies. Although this measure is being introduced mainly to discourage the use of tax-saving constructions, the scheme also offers opportunities: if an entrepreneur uses a service first for VAT-exempt supplies and later for taxed supplies, part of the previously non-deductible VAT can still be reclaimed.
Abolition of the reduced VAT rate for accommodation and cultural services
Another important measure is the abolition of the reduced VAT rate for the following categories:
- Works of art;
- Books, magazines and newspapers (physical and digital and lending);
- Sports activities (insofar as they are not exempt);
- Lodging and short-stay rentals;
- Admission to museums, performances and sports competitions and certain cultural goods and services.
From 2026, among other things, the reduced VAT rate (now 9%) for lodging will be abolished and the general rate (now 21%) will apply. This will affect, among other things, the rental of hotel rooms, holiday homes, and mobile homes. Short-term accommodation for specific groups, such as employees, students and asylum seekers, will also fall under the general VAT rate. However, camping will remain under the reduced rate.
Certain cultural services, such as museums and concerts, are also currently subject to the reduced rate of 9%. This rate will be abolished for many of these services, except for services such as admission to theme parks, cinemas and circuses, where the reduced rate will continue to apply.
What does this mean for your business?
It is clear that the proposed changes will affect entrepreneurs in various sectors, from real estate to the cultural sector. It is therefore important to map out the financial and administrative impact of these changes in good time so that you are well prepared for the changes.
Besides these VAT changes, the Tax Plan 2025 also contains important changes in other tax areas, which are discussed in our other blog. Make sure you are fully aware of all tax developments that may affect your business.
Do you have questions about the particular changes or want to know how best to prepare your business? Feel free to contact us for tailored advice.
