VAT increase on accommodation is not a closed chapter for KHN

How to proceed now?

Since 1 January 2026, the VAT rate of 21% has applied to lodging. Yet as far as KHN is concerned, it is not a closed chapter. The first effects of the VAT increase are becoming visible and the question is: where to go from here? Flash polls, a sounding board group of hoteliers, staying in talks with The Hague and continuing to influence the issue as much as possible; that is what we are committed to.

The VAT increase has been a reality since 1 January 2026. Earlier, the impact analysis we conducted in collaboration with ABN AMRO showed that the measure could have significant effects on price perception and booking behaviour. Of foreign tourists (mainly from Germany and Belgium), 30% might no longer choose to holiday in the Netherlands. Similarly, 5% of Dutch holidaymakers would possibly drop out.

To get a real picture of the impact of the VAT increase, we need hard figures of occupancy rates and ADR (average daily rate), among others.

We are currently conducting an initial poll of hoteliers, specifically asking how January 2026 was compared to January 2025. This will give us a first sharper picture of the effects of the VAT measure. This will allow us to immediately scale up our efforts if there are actually negative effects with a major impact. 

KHN Hotels Sounding Board Group for targeted input

In addition, we are in close contact with several data partners who also have a good numerical understanding of hotel market developments. We will of course use these facts and figures in our discussions with the Ministries of Economy and Finance. 

In order to secure signals from the field, we previously set up a KHN sounding board group for hotels. Different regions and types of hotels are represented in this and this makes the sounding board group a good reflection of our supporters. The sounding board group members provide us with targeted input to support our lobby; starting with the VAT lobby and in the future certainly also with other topics relevant to the hotel industry.

Advice on dealing with the VAT increase

Furthermore, we assist our supporters with advice so that the VAT increase is optimally workable for them within the existing frameworks. This advice includes:

1. Work with fair market values

Listing low VAT items such as breakfast, wellness or other facilities separately can make a significant difference for leisure guests. However, it is important to work with the fair market value of your services. Hoteliers planning to apply splitting or adjusting the mutual relationships, we recommend having the intended splitting tested by the tax authorities beforehand.

2. Do not use creative constructions

We recommend applying splitting only to divisible services, looking closely at fair value. We advise against using creative constructions - such as offering a low room rate when buying an expensive bottle of water.

3. Encourage direct bookings

Booking.com and Expedia have suspended the commission on the VAT increase for the time being, and we remain in discussion on this issue. Nevertheless, direct bookings are very important for hotels and we encourage hoteliers to actively educate guests on the benefits of this.

The impact of the VAT increase on accommodation will become increasingly clear in the coming months. Naturally, we will continue - where possible - to exert influence, underpinned by figures and practical experiences from our supporters.

Lobbying against VAT increase on accommodation: a retrospective

To halt the proposed VAT increase on accommodation, KHN actively pursued lobbying in previous years. We launched various campaigns, regularly reached the national media, maintained close contacts with MPs and the Ministry of Finance and had an independent study carried out by CELTH on the consequences of the VAT increase. We also published the magazine Sleepless nights - The consequences of 21% VAT, in which hoteliers shared their experiences, to give policymakers insight into investment decisions under pressure, further shrinking margins and increasing competition with neighbouring countries. All this resulted in several motions being tabled in the House of Representatives. Unfortunately, the required alternative coverage of around EUR 1.2 billion was the bottleneck. 

After the Lower House elections last October, we offered the (new) members of parliament our menu for a future-proof hospitality industry; an invitation to work together on policy that really connects with daily hospitality practice.

Listen to Hotelvak the Podcast an episode with Marijke Vuik, Chairman KHN.