The VAT rate can make a real difference on a renovation. For part of the work you pay 9% VAT instead of 21%. But not for everything, and only under certain conditions. Here's an overview.
Which jobs are 9%?
According to the Dutch Tax Administration (Belastingdienst), the reduced 9% rate applies to these jobs on a home older than 2 years:
- Painting walls, ceilings, frames and doors
- Plastering walls and ceilings
- Wallpapering
- Insulating the home
For plastering, the Belastingdienst says the preparation, pre-treatment and materials used also fall under 9%.
Which jobs are 21%?
Work that is too far removed from these four jobs falls under the standard 21% rate. For plastering, the Belastingdienst itself gives these examples:
- installing drywall partitions
- tiling walls
- laying floors
Fitting bathroom fixtures, plumbing and building a dormer are also 21%.
When is a home older than 2 years?
The 2-year period starts on the date the property is first used as a home. What counts is its age at the time the work is done. A new-build home that's eighteen months old is therefore still 21%.
If the home was built in stages, for example with a new extension, at least 50% of it must consist of parts older than 2 years. You can check the age in the Dutch Basic Registration of Addresses and Buildings (BAG) at the Kadaster.
What does this mean for your wallet?
A worked example using our hourly rate of € 50 excluding VAT. Plastering a living room takes about 20 hours of labour:
| 9% VAT | 21% VAT | |
|---|---|---|
| Labour excl. VAT | € 1,000 | € 1,000 |
| VAT | € 90 | € 210 |
| Total | € 1,090 | € 1,210 |
That's € 120 difference on this job. For plastering and painting a whole house, it quickly adds up.
What to watch out for
- Ask for a quote that shows the VAT rate for each item.
- Be careful with "cash, no receipt" offers. You'll have no warranty and no invoice if something goes wrong.
- The reduced rate only applies to homes. For commercial property you pay 21%.
In our price calculator you can tick whether your home is older than 2 years. It then uses 9% straight away for plastering and painting.
Source: Belastingdienst, "Btw-tarief werkzaamheden aan woningen ouder dan 2 jaar" and "Btw-tarief stukadoren" (consulted October 2026). This article is general information, not tax advice.
