Two quotes for the same painting work, and yet a sizeable difference at the bottom line. Often that is not down to the hourly rate, but to the VAT: one painter charges 9%, the other 21%. For you as a private individual that makes a direct difference, because you cannot reclaim the VAT. The rules are simple in outline, but in practice the line between what does and does not fall under the low rate is less sharp than many people think. This article explains which work falls under 9%, what applies to materials, when a home is "older than two years", how the invoice must be split and how things work for solar panels and an apartment complex.
The main rule: 21%, with four exceptions for homes
Building and renovation work in the Netherlands is subject to the general VAT rate of 21%. That applies to the labour of the contractor, the carpenter, the tiler, the electrician and the plumber, and to the materials they supply. The Wet op de omzetbelasting 1968 (the Dutch VAT Act) contains in Table I a limited number of services to which the reduced rate of 9% applies. For homeowners, four are relevant:
- Painting homes older than two years (Table I, item b.8).
- Plastering homes older than two years (the same item b.8).
- Wallpapering homes older than two years; the Belastingdienst (Dutch Tax Administration) counts this in the same category.
- Insulating: applying insulation material aimed at saving energy to floors, walls and roofs of homes older than two years (Table I, item b.19), but only for the labour part.
In addition, cleaning inside homes falls under 9%, regardless of the age of the home, but that is rarely relevant for a renovation. Everything not in this list is taxed at 21%. So there is no general low rate for "renovating" or "refurbishing"; the temporary scheme that once applied to this has been a thing of the past for years.
Painting, plastering and wallpapering: labour and materials
For painting and plastering, the low rate is broad. According to the Belastingdienst, not only the labour falls under 9%, but also the preparation of the work, the pre-treatments and the materials used: paint, filler, plaster, primer and the like. Lacquering, varnishing and staining also belong to it, as does applying a poured or coated floor, provided a paint product is used. Sanding and lacquering a wooden floor only falls under 9% if that floor forms part of the structure of the home; so a floating laminate floor does not.
Wallpapering is slightly different. The labour, the necessary preparation and auxiliary materials such as paste fall under 9%, but the supply of the wallpaper itself is taxed at 21%. A paperhanger who also supplies the wallpaper must therefore list it separately on the invoice.
The line lies at work that is "too far removed" from the painting or plastering work. The Belastingdienst gives as examples under 21%: structural repair, replacing window frames and doors, sealing building components, large-scale concrete repair, installing plasterboard walls, applying wall tiles and laying floors. If a painter also replaces a rotten window frame during exterior painting, that frame with the associated carpentry is 21% and the painting is 9%. A plasterer who first installs a plasterboard lining wall and then plasters it splits the invoice in the same way.
Insulating: labour 9%, materials 21%
For insulation, an important restriction has applied since 1 January 2014: the low rate now only applies to the labour. The insulation materials themselves, such as glass wool, rock wool, polystyrene, PUR, insulating glass, shells and clay pellets, are taxed at 21%, even if the installer supplies or makes them. The law describes it as "applying insulation material aimed at saving energy to floors, walls and roofs", with the exception of the materials. So the aim must be saving energy; sound insulation alone does not count. According to the Belastingdienst, doors, window frames and thatch do not count as insulation material.
Work that is connected with insulating but does not fall under it remains 21%: demolition work, installing sun protection, building a roof extension, replacing the roof covering. For retrofitting roof insulation where the tiles are also replaced, 9% only applies to the hours spent applying the insulation. Which insulation measures deliver the most for your home is explained in Improving your energy label: which measures really count.
When is a home "older than two years"?
The two-year period runs from the first occupation of the home and is assessed at the moment the work is carried out, not at the moment of the quote or the invoice. If in doubt, the tradesperson can look up the construction date in the Basisregistratie Adressen en Gebouwen (BAG, the Dutch register of addresses and buildings) via the Kadaster (Land Registry), or ask you to sign a short written declaration that the home is older than two years. That declaration protects the tradesperson in the event of an audit; do not refuse it, but only sign what is true.
What counts as a "home" is also defined. It concerns immovable property intended for permanent residence by private individuals. This also includes student housing and houseboats or mobile homes that are suitable and intended for this. Not covered by the low rate are holiday homes that may not be lived in permanently, commercial buildings and separate garage boxes. A building that is partly a home and partly commercial space, such as a shop with a flat above it, only qualifies for the residential part; the invoice is then split proportionally. Until 1 July 2025, if the building was predominantly used as a residence, the entire building could still be brought under 9%; that concession has lapsed.
Apartments and the VvE
An apartment complex consists of homes, so painting, plastering, wallpapering and insulating the individual apartments simply falls under the rules above. For the communal areas, such as the stairwell, the hall, the lift and the storage corridor, the low rate may also be applied, as long as those areas are used for private residence. If they are also used for other purposes, for example because the ground floor consists of shops that use the same entrance, then since 1 July 2025 a split must be made according to the part intended for residence. A VvE (owners' association) that puts out a repaint of the exterior window frames to tender would do well to include this point in the request for quotes. More about decision-making and maintenance in a VvE can be found in Renovating a VvE apartment.
Solar panels: 0% since 2023
Since 1 January 2023 solar panels have had their own scheme: the zero rate. The supply and installation of solar panels, including integrated panels that serve as roof covering, are taxed at 0% if they are installed "on or in the immediate vicinity of homes" (Table II, items a.10 and b.7). According to the Belastingdienst, this also covers a garage, shed, conservatory or extension belonging to the home, a holiday home, a home with a business on the premises and buildings of a VvE. The zero rate also covers the work and goods directly needed to make the panels function: cabling, mounting materials, optimisers, the inverter and the adjustment of the meter cupboard.
Not covered by the zero rate are a home battery or battery pack, replacing the entire consumer unit, and panels on a commercial building without a residential function or on a public building. If you buy a new-build home with integrated panels, you pay 21% on the entire home, because the panels are then part of the supply of the home. The advantage of the zero rate is that you no longer need to register with the Belastingdienst as a VAT entrepreneur to reclaim the VAT, as was common before 2023.
This is what the invoice should look like
A tradesperson who carries out both 9% and 21% work must split the invoice: one part at the low rate and one part at the high rate, each with its own taxable amount and its own VAT amount. An invoice with a single total "including VAT" without a breakdown is impossible for you to check and a risk for the tradesperson in the event of an audit. The low rate also applies if a main contractor subcontracts the painting or plastering work to a subcontractor; the subcontractor then invoices 9% to the main contractor, who passes it on to you at the same rate.
- Ask at the quote stage for a breakdown per type of work with the VAT rate stated. That way you compare quotes on the same basis; how to go about that is explained in Comparing quotes: how to read a building quote.
- Check the age of the home and make sure the work is actually carried out after the two-year threshold.
- Watch out for combined work. A contractor who renovates a bathroom and also plasters the ceiling may only charge the plastering at 9%; the rest is 21%.
- Check the final invoice for the same split as the quote. Additional work must also get the correct rate per item; see Additional work during a renovation.
A tradesperson who wrongly charges 21% costs you money; a tradesperson who wrongly charges 9% will get an additional tax assessment themselves and may try to recover it from you. In both cases a clear split is in your interest. VAT rules change regularly and have exceptions that are not all covered in this article; if in doubt, consult the current information on belastingdienst.nl or ask the contractor to explain how they calculated the VAT.