Netherlands reduces VAT on sailing lessons
By IBI Magazine
Dutch sailing schools are now able to charge a much lower rate of VAT after the Zuidlaardermeer Sailing School and HISWA Holland Marine Industry won a recent court victory against the Dutch tax authorities.
Sailing schools in the Netherlands were previously forced to charge clients 19 per cent VAT. Now, under specific conditions, the rate has dropped to just six per cent — in line with all other sports in the country.
The Dutch tax authorities had justified the higher rate by saying that inspection of watersports activities was more difficult as they take place in public spaces rather than a building or sports facility.
"This argument was not in line with the principle of stimulating sports," says Geert Dijks, HISWA manager public affairs. "Moreover, sailing is a traditional Dutch sport as well as an Olympic sport. It was simply unacceptable that parents who wanted their children to have a week of sailing lessons had to pay so much more VAT than for any other form of sports camp."
In its verdict, the Court decided that sailing lessons taking place in a demarcated sailing area is a designated 'sports facility' and can therefore be charged VAT of six per cent.
It is not yet known if the Dutch tax authorities will appeal the decision.
(8 July 2010)
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