13 cents of every Euro spent is tax by the Dutch government

23 April 2012, by

The average Dutch household spent 32.500 euros in 2010, of which 4.320 is tax, according to CBS.

Of these indirect taxes, 60 percent is value-added tax (VAT). The average expenditure on VAT in 2010 was 2.560 euros.

The Dutch government also levies excise duties on products it wants to discourage consumption of. These taxes form 20 percent of all indirect taxes in the Netherlands, or 960 euros on average.

The average Dutch household paid 330 euros on tobacco duty, 390 euros on road tax and 330 euros on environmental taxes. Fuel tax was on average around 490 euros a year.

Taxes in the Netherlands are comparatively high, funding an extensive welfare state and high public spending levels. Expats however can benefit from tax breaks in certain cases, such as the 30 percent ruling.

Proportionally, the middle incomes paid the highest levels of indirect tax, varying from 12-15 percent of disposable income. The rich spent less on smoking, alcohol and soft drinks, and more on VAT-exempt services like education and sports.

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James Shaw

James is an assistant editor at IamExpat, and is the newest member of the team. Interests include tr...



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