VAT News

Netherlands-Reduced rate applicable to toothpaste and sun cream

Last week, the Dutch supreme court gave its verdict in a case brought by a retailer around the VAT rate applicable to sales of toothpaste and sun cream sold within the Netherlands.

Previously, both products had been subject to the standard rate of 21%, however the retailer argued that the reduced rate of 6% should apply as the products were of a pharmaceutical nature.

The supreme court agreed, with particular reference to the toothpaste containing fluoride to prevent cavities and decay, and the sun cream with properties to prevent damage to the skin. Accordingly the verdict was that the 6% rate is applicable.

Many retailers in the Netherlands have confirmed that they will now reduce the price of these products.

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