Dutch VAT increase as of January 1, 2025: Heavy blow for private horse breeders
- Sabine Smit
- 18 nov 2024
- 3 minuten om te lezen
Bijgewerkt op: 19 nov 2024
The Dutch VAT increase from 9% to 21% on the supply of agricultural goods, which will take effect on 1 January 2025, will cause significant cost increases within the horse farming industry. The VAT increase is therefore a heavy blow for private horse breeders and keepers in particular.
The VAT increase will make the following products, among others, significantly more expensive:
Grains, compound feed, straw and flax, but also the supply of a broodmare or stallion, the rearing of foals and young horses by third parties, training of horses by third parties, the supply of semen and embryos and the supply of horses for slaughter.
Professional entrepreneurs can offset this with the VAT return, which does not affect the cost price. When supplying feed or straw to customers, 21% VAT must be paid.
For the time being, boarding stables are not affected by the abolition of the reduced rate for the supply of agricultural goods. The division remains: 1/3 rental box exempt from VAT, 1/3 opportunity to practice sports 9% VAT, and 1/3 other services 21% VAT. Until 2026, the 9% rate will continue to apply to sports. From 2026, this rate would go to 21%, but fortunately this intention has been shelved for the time being.
Private horse breeders
The increase in costs is hitting private horse breeders hard. Higher expenses for feed, semen, straw and flax are further increasing the cost price for foals. Although breeding foals is a hobby for private breeders and it is often not necessary to earn back all the costs incurred, it is still important for many private breeders to cover a large part of the costs and to keep the hobby affordable. With the current shrinking sales market and the falling prices for foals and young horses, this will be difficult to achieve for many breeders.
Collaboration and Quality over Quantity
The VAT increase has far-reaching consequences for the entire horse industry. Breeding, rearing and selling foals and horses will become more expensive, which further complicates the financial picture for hobby and recreational horse ownership. Cost savings by focusing on quality rather than quantity and entering into partnerships can ease the pain somewhat, but the entire sector will clearly notice the consequences of the adjustment.
Tips for collaboration
Cooperation between horse breeders can contribute to reducing costs, increasing efficiency and improving the quality of the breeding process in several ways. Here are some tips:
1. Joint purchasing of feed and supplies
By purchasing feed, hay, straw and other supplies together, you can benefit from volume discounts.
2. Keeping breeding mares together
Sharing costs by jointly owning a broodmare with another breeder or with a rider.
3. Sharing of stabling and pasture
For example, consider group housing of mares in winter or housing young horses in summer.
4. Cost sharing for veterinary care and nursing
The costs for veterinary care, such as vaccinations and regular check-ups, can be considerable. Make joint agreements for group vaccinations, dental check-ups or scanning of the mares.
5. Joint transports
Transport costs for horses can add up, for example for transporting mares and foals to inspections or photo and video shoots for an auction. Share the transport with another breeder or investigate whether it is more advantageous to jointly use a transporter to transport multiple horses at once.
6. Sharing knowledge and experience
Join a local breeder group. Sharing knowledge can lead to cost savings and a more efficient approach that leads to better results.
7. Joint marketing and sales
Collaboration in the marketing and sale of horses can result in considerable savings. This can be done, for example, by jointly organizing a photo and video shoot and placing advertisements. Create a separate website or web page on an existing website where all members of the breeding association can offer their horses. This increases visibility and can lead to faster sales and lower costs per breeder.
Veulentekoop.nl can help you!
Contact us today for advice or a customized quote, for example for a half or full day of photo and video recordings, or for creating and managing your personal web page. Call or send a WhatsApp to 06-22446843.
By working together strategically, horse breeders can save costs, increase efficiency and at the same time improve the quality of their breeding programs. When working together, make clear agreements and put them in writing to prevent misunderstandings or conflicts.
Sabine Smit - Veulentekoop.nl
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