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    TaxLive
    January 7, 2026 (about 2 months ago)

    Pension Premiums (Still) Not Subject to VAT

    Featured image for: Pension Premiums (Still) Not Subject to VAT
    Netherlands VAT News • TaxLive

    Summary

    Dutch court rulings in September 2025 declared pension premiums taxable at 21% VAT, but the Minister of Finance has rejected adopting these rulings, maintaining the current VAT-exempt status until a Supreme Court decision. The rulings apply to mandatory sector pension schemes, while voluntary schemes remain unaffected. If the Supreme Court confirms the premiums are taxable, lawmakers may introduce corrective measures.

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    Key Facts

    • •On 30 September 2025, Hof Arnhem-Leeuwarden ruled that pension premiums paid to pension funds are subject to 21% VAT, as pension execution is not a VAT‑exempt insurance service.
    • •The Dutch Minister of Finance announced on 12 November 2025 that he would not adopt these rulings, citing conflict with a 2023 ruling by Hof Amsterdam (ECLI:NL:GHAMS:2023:1249).
    • •Until the Hoge Raad issues a decision, the tax authority will continue to treat pension execution as a VAT‑exempt service, meaning pension funds are not required to charge VAT on premiums.
    • •The rulings specifically concern mandatory sector pension schemes (e.g., bakers and carpenters); the principle “no premium, but right to pension” applies only to mandatory schemes, not to voluntary schemes where premium payment is a condition for pension rights.
    • •If the Hoge Raad ultimately rules that pension execution is not VAT‑exempt, the legislature may introduce measures to address the issue.
    Europe
    Netherlands
    Compliance
    Exemptions
    VAT Rates
    VAT Update
    Read Full Article at TaxLive