Dutch Museums Face Double Whammy: Pandemic Recovery and VAT Hike Threaten Survival
AMSTERDAM – The Dutch museum sector, still reeling from the impact of thecoronavirus pandemic, faces a new threat: a proposed value-added tax (VAT) increase that could cripple smaller institutions.
According to figures released by the MuseumAssociation, the sector is struggling to regain its footing, with visitor numbers still below pre-pandemic levels. While large museums have seen a rebound, smaller and medium-sizedmuseums are struggling to stay afloat, facing declining revenues and rising costs.
The association is particularly concerned about the government’s plan to raise the VAT rate on museum tickets from 9 percent to 21 percent in 2026. This increase, part of a broader tax reform package, is expected to generate an additional 1.2 billion euros annually for the government.
However, critics argue that the government’s projections fail to account for the potential decline in visitor numbersdue to higher ticket prices. This could have a devastating impact on smaller museums, many of which rely heavily on volunteers and have limited financial reserves.
Museum Association Director Vera Carasso expressed concern, stating, Although visitor numbers are rising, we see that many museums are still struggling to stay afloat. The sector iscreaking under the pressure of continuously rising costs.
The proposed VAT increase has sparked outrage among museum professionals and cultural advocates, who argue that it will make museums less accessible and discourage people from visiting. They fear that the move could ultimately lead to the closure of smaller museums, further diminishing the cultural landscape of the Netherlands.
The government’s coalition, comprised of the PVV, VVD, NSC, and BBB, has defended the VAT hike, arguing that it is necessary to balance the budget. However, the Museum Association and other stakeholders are urging the government to reconsider the proposal, arguing that it will have unintended consequences forthe cultural sector.
The debate over the VAT increase is likely to intensify in the coming months, as the government prepares its budget for next year. The fate of Dutch museums, and the cultural landscape they represent, hangs in the balance.
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