VAT rate at zero for fruit and vegetables?

After years of deadlock, the European Ministers of Finance have agreed to offer Member States the option of setting the VAT rate at 0%. According to current European legislation, the minimum VAT rate that can be applied is still 5%. It is expected that the new agreement between the European Ministers of Finance will be transposed into European legislation in early 2022.

Lobbying by GroentenFruit Huis 

Last October, GroentenFruit Huis, together with the National Fruit and Vegetable Action Plan and the Healthy Shopping coalition, presented the manifesto 'Investing in a healthy future' to both the State Secretary Blokhuis and the permanent parliamentary committee of Health, Welfare and Sport of the Dutch Lower House. At the beginning of the year, GroentenFruit Huis managed to persuade various political parties in the House of Representatives to include the VAT reduction on fruit and vegetables in their election manifestos. It is up to the coalition parties to actually implement the much-heard call to reduce VAT on fruit and vegetables to 0%.

Barrier raised

A lower VAT rate on fruit and vegetables as a product category is very welcome in a time of high inflation. Earlier research showed that a VAT increase from 6 to 9% as of 1 January 2020 further raised the barrier for many Dutch people to choose fruit and vegetables. GroentenFruit Huis therefore urges the new cabinet to invest in a healthy future. Promoting a healthy diet with plenty of fruit and vegetables will certainly pay for itself.

Groentenfruithuis.nl