With effect from 1 January 2026, the supply consisting of providing accommodation moves from the low (9%) to the high (21%) VAT rate.
Moment of stay
This has been known for a while, as operators of holiday homes, hotels and the like already had to anticipate this rate change. This is because for the rate to be applied, what matters is not when the stay is booked nor when it is paid, but rather when the guest actually stays.
So a hotel room booked on 15 December 2025 and paid for overnight stay on 15 January 2026 is subject to 21% VAT.
Short stay
The rate change concerns the services under item b.11 in Table I to the Turnover Tax Act. This includes all situations in which the reduced rate was applicable until 31 December 2025 due to “short stay”. The limit for short-term stay is thereby set at a stay of up to 6 months.
The rental of (furnished) accommodation for up to 6 months is exempt from the rental exemption, but will be taxed at 21% VAT with effect from 1 January 2026.
Camping
Item b.10 of Table I to the Sales Tax Act will not expire. This item concerns the provision of opportunity for camping. Camping is the short-term letting of (demarcated) plots at camping sites and caravan parks where campers place their own accommodation - such as a tent, caravan or camper. The provision of accommodation in summer cottages, beach houses, mobile homes and (safari) tents and the like does not fall under the reduced VAT rate.