Netherlands Could Nix VATs on Vegetables, Fruit, USDA Says
The Netherlands is considering eliminating value-added taxes on vegetables and fruit and could implement the change as soon as 2024, USDA’s Foreign Agricultural Service said in a Dec. 14 report. The move, meant to “stimulate a healthier diet for Dutch…
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consumers,” has been met “with several challenges,” USDA said, and the country is not sure how to “differentiate products that are or are not eligible for a reduced VAT rate.” The government also said imports could be “especially susceptible to fraud” if fruits and vegetables are “commingled” with other products, and would likely need to be subject to strict customs scrutiny. If the Netherlands follows through with the measure, it could reduce prices for a consumer base that spends nearly 25% of their food purchases on vegetables and fruit, USDA said.