TY - BOOK
T1 - Calculating the effects of increasing the VAT on ornamental plant products in the Netherlands and the EU
T2 - Update for the situation in 2023
AU - van Galen, Michiel
AU - Jukema, Gerben
AU - Splinter, Gerben
PY - 2023/9
Y1 - 2023/9
N2 - Ornamental horticultural products are taxed at a reduced VAT rate in the Netherlands (9% rather than 21%) as well as in 14 other EU countries. Increasing VAT would have a negative impact on turnover and employment in the supply chain. These calculations show that a VAT increase in the Netherlands would lead to a loss of around €200 million in turnover in the ornamentals sector at wholesale prices (-1.6%). If VAT were to be increased in other EU countries too, this would have a particularly significant impact on the Netherlands’ exports and thus on primary production. In this scenario, the drop in turnover for the ornamentals sector (at wholesale prices) would be €930 million (-7%). The expected impact on the government’s VAT revenue would be partly offset by fewer flowers and plants being bought, and in the shorter term by a decline in tax receipts and social insurance premiums from businesses and employees, along with an increase in unemployment benefits being paid out.
AB - Ornamental horticultural products are taxed at a reduced VAT rate in the Netherlands (9% rather than 21%) as well as in 14 other EU countries. Increasing VAT would have a negative impact on turnover and employment in the supply chain. These calculations show that a VAT increase in the Netherlands would lead to a loss of around €200 million in turnover in the ornamentals sector at wholesale prices (-1.6%). If VAT were to be increased in other EU countries too, this would have a particularly significant impact on the Netherlands’ exports and thus on primary production. In this scenario, the drop in turnover for the ornamentals sector (at wholesale prices) would be €930 million (-7%). The expected impact on the government’s VAT revenue would be partly offset by fewer flowers and plants being bought, and in the shorter term by a decline in tax receipts and social insurance premiums from businesses and employees, along with an increase in unemployment benefits being paid out.
UR - https://edepot.wur.nl/638533
U2 - 10.18174/638533
DO - 10.18174/638533
M3 - Report
T3 - Report / Wageningen Economic Research
BT - Calculating the effects of increasing the VAT on ornamental plant products in the Netherlands and the EU
PB - Wageningen Economic Research
CY - Wageningen
ER -