The Dutch coalition government of D66, VVD and CDA aims to increase domestic VAT on ornamentals from 9% to 21% as of 1 January 2028. VGB director Matthijs van Mesken expressed concern that other countries might follow suit. How realistic is this fear?
The Dutch government's plan to increase VAT on plants and flowers has shaken the sector. According to research by WUR, a VAT increase from 9% to 21% would lead to a significant price hike for consumers, while putting further pressure on the margins of growers, traders, florists and garden centres. This would lead to hundreds of millions in lost revenues and thousands of redundancies in the chain. Moreover, a price increase would hamper greening, and it is doubtful whether it would generate the intended revenue for the treasury.
In the Bloemisterij podcast, Matthijs Mesken of VGB expressed his fear that other countries might follow the Dutch example. On the very same afternoon (29 January) that the new cabinet presented its plans, Mesken had a call from a French colleague, asking whether the Dutch minority government was indeed seeking to increase VAT on ornamentals as of 1 January 2028? He said he feared France may follow suit. Mesken notes that there is also discussion in Germany and Belgium regarding a VAT increase on ornamental horticultural products.
