Dutch VAT increase for rental income in 2026
As of January 1, 2026, the VAT on accommodation will increase from 9% to 21%. This means that for all reservations with an end date in 2026, this new rate must be applied. You can prepare for this by creating a VAT code that takes this increase into account, and applying it to the ledger account where your rental income is registered.
New VAT code for new reservations
When you set up this transitional VAT code correctly, it will apply to all new reservations that are booked. First, create a new VAT code, in which you set the correct VAT rates. Make sure you use the 9% rate for 2025, and enter the 21% rate with the correct effective date (January 1, 2026). Link the correct ledger account, where the VAT amounts will be registered.
In the overview of ledger accounts, navigate to the ledger account where all rental turnover is registered. Edit this, and adjust the linked VAT rate to the newly created transitional code. Then, verify that all cost items booked to this ledger account indeed fall under the intended accommodation VAT increase. You will find these under 'Assignments'. It may be necessary to link some cost items to a different ledger account.
The VAT is added as it applies on the last day of the reservation, the departure date. A reservation running from December '25 to January '26 will therefore be invoiced at 21% VAT.
What about existing reservations with an end date in 2026?
If you already have confirmed reservations in your PMS with an end date in 2026, the new VAT code will not be applied retroactively to them. The Booking Experts team is working to support you with migrating these reservations to the higher VAT rate. So you don't have to make manual adjustments for this immediately. To ensure the migration of these existing reservations runs as smoothly as possible, it is important that you set up the new VAT code for new reservations correctly!