Zero VAT on fruit and vegetables delayed

The coalition agreement includes a review of how the VAT on fruit and vegetables can eventually be reduced to 0%. The Cabinet is currently working on the details of this agreement. However, it is not possible to arrange this before 1 July 2022, according to State Secretary Van Ooijen of the Ministry of Health, Welfare and Sport.

Van Ooijen: "The introduction of a zero VAT rate for specific foodstuffs such as fruit and vegetables is a source of complexity for businesses and the tax authorities. Every distinction inevitably raises the question of where to draw the line. This also applies if the distinction is made on the basis of 'unprocessed'. For example, broccoli and apples are sometimes washed, packaged, cut and/or peeled. These products have then undergone 'processing' in a certain sense."

The earlier introduction of a zero rate for only unprocessed fruit and vegetables is also not an option. According to Van Ooijen, it is important to define fruit and vegetables properly. This is currently being worked out but will take some time. The cabinet feels that this should be done quickly, but also carefully and correctly at the same time. It is therefore not possible to regulate this before 1 July 2022.

View the Parliamentary letter about zero VAT for fruit and vegetables (Dutch only)