Netherlands Waives VAT on Company Donations of Medical Supplies

Dutch companies that buy medical supplies to donate to healthcare institutions’ Covid-19 work won’t have to pay value-added tax on the donations.

According to a notice published by the Dutch tax administration on Wednesday, such donations won’t be treated as a regular business activity for VAT purposes. And companies will be able to deduct the VAT they incurred when purchasing the supplies.

• The government said it didn’t want businesses and self-employed people who donate medical supplies to incur additional administrative or financial burdens as a result.
• Online lessons offered by gyms and other sports facilities will also temporarily qualify for the reduced VAT rate of 9% applicable to gym passes and physical lessons, instead of the standard 21% rate, the notice said.
• All the measures will apply retroactively from March 16 until June 16.