Floratalk

The reduced VAT rate (9%) for floriculture remains under pressure  in the Netherlands. The current government is looking for money, wants to simplify the tax system and sees multiple rates as undesirable.

Royal FloraHolland conducts advocacy in The Hague for maintaining the reduced rate. Our lobbyist, Willem-Jan Verdoes, is the catalyst and coordinates with the VGB (Dutch Association of Wholesalers in Floricultural Products), VBW (Dutch Florist Association), Tuinbranche Nederland (Dutch Gardening Industry) and the CVAH (Dutch Market Traders Association). On their behalf too, we urge the current government to maintain the reduced VAT rate. This has been successful so far, thanks to concrete data and facts about the impact on the sector as well as the support of several political parties whose views are in line with ours.

In 1975, at the initiative of the House of Representatives, the reduced VAT rate of floriculture was established. With the aim of boosting turnover and employment in the sector and making this Dutch cultural product accessible to every consumer. Every few years, we have had Wageningen Economic Research calculate the impact of any increase.

A price increase due to a 21% VAT rate would mean an immediate drop in demand for flowers and plants. Its financial impact is some €390 million. 3,000 jobs in the supply chain would be lost. Examples from abroad showed the effects of a VAT increase: in Spain, a quarter of florists went out of business in 2012, after which the VAT increase was reversed in 2015.

‍

Besides a healthy sector, the contribution of floriculture to the liveability of cities and the physical and mental health of people has also been scientifically recognised. So floriculture products should be widely available, even for those with small pockets.

Dutch floriculture is a major export sector worth €7.1 billion (source: VGB January 2025) and therefore fundamental to the Netherlands' economy. If the reduced rate is abandoned in the Netherlands and adopted by other European countries, it would have major consequences for the exports. In short, Royal FloraHolland, together with its partners from the trade, continues to push energetically for the reduced VAT rate. Floricultural products must remain accessible to every consumer, the sector must be able to continue to flourish, innovate and become more sustainable, and we will continue to make our contribution to the Dutch economy!

‍