By Luca van Silfhout, Patrick Vettenburg

A number of goods and services, listed in an annex to the Dutch VAT Act, qualify for the reduced VAT rate (instead of the regular VAT rate of currently 21%). Among these goods and services are: qualifying medicines, first-aid type supplies such as bandages and qualifying medical aids such as medical vaporizers, intravenous-pumps and catheters.

As of 1 January 2019 these supplies are taxed with 9% VAT instead of 6%.

In determining which rate applies, the date of the supply is leading. For supplies after 31 December 2018, whereby payment is received still in 2018 the 6% rate applies. In such cases it is not necessary to report and pay an additional 3% VAT in 2019. However, the exact amount and nature of the future supply of goods or services should be clearly specified.