As soon as you charge money for a service involving horses — renting out a stable spot, teaching lessons, reselling a horse — VAT comes into the picture. Which rate applies and which scheme fits you depends on what you supply and how large your activity is. This is the outline; for your exact situation, the Belastingdienst (the Dutch Tax Administration) or a tax advisor is the source.
Are You Liable for VAT?
VAT uses a broad definition of a business. You quickly count as a business for VAT purposes if you independently and with some regularity supply services for payment — even if it happens alongside a job, and even if you don't (yet) make a profit from it. A single stable spot that you rent out to a fellow rider on a structural basis can already count.
That's a different question from whether you run a business for income tax purposes. For VAT you can count as a business while for income tax you don't yet have "profit from business." If you're unsure whether you're over the line, confirm the classification before you start invoicing — having VAT assessed retroactively on invoices already sent is an unpleasant surprise.
Which Rate Applies to What?
This is where most of the confusion lies. The VAT rate depends on the supply you make, not on the fact that it involves horses. In broad terms:
| Activity | VAT treatment (broad outline) |
|---|---|
| Boarding / stabling horses | Usually the standard (high) rate |
| Teaching and instruction | High rate; a sports exemption may apply for associations |
| Training and schooling | Usually the standard (high) rate |
| Selling a horse (trading) | Standard rate, sometimes the margin scheme |
| Boarding within an agricultural business | May differ; have this checked |
Practice is more nuanced than this table. Many boarding stables supply a package: a stall, feed, turnout (time outside in the pasture), and sometimes training and equipment storage all at once. Whether that counts as a single supply or as separate services affects the rate. The reduced rate that used to apply to some agricultural supplies has been narrowed over the years. Don't assume that the rate used by a stable down the road also applies to you — check the current classification with the Belastingdienst.
Boarding and Stabling Looked at Separately
For anyone starting a stable, this is the core question. Boarding horses for payment is, as a rule, a VAT-taxed service at the standard rate. That means: charging VAT on the boarding price, and in return deducting the VAT on your own costs — feed, bedding, stall maintenance, a new tractor.
A few points that come up in practice:
- Renting out real estate is different from boarding. Bare rental of land or a building can be VAT-exempt; a boarding service (stabling with care) usually isn't. The combination you offer determines the treatment.
- Turnout and grass boarding can be treated differently from a stall with full care. Have a mixed offering checked.
- An agricultural background (horses alongside livestock or arable farming) can affect the classification. This is assessed case by case per business.
Because the rate depends on exactly what you put in the package, it's worth describing your service precisely in advance and having that description checked.
The Small Businesses Scheme (KOR)
If your annual turnover stays under a set threshold, you may be able to use the small businesses scheme (kleineondernemersregeling). You then don't charge VAT and don't file returns, but you also can't deduct VAT. For a small stable with a few boarding spots, that can bring administrative peace of mind.
The choice doesn't always work out favorably. Two things to calculate in advance:
- If you invest heavily, you lose the right to deduct VAT — and with a new stable or expensive equipment, that deduction can be worth more than the convenience of not filing returns.
- The KOR is a choice with a minimum term, not a switch you flip every quarter. Once you opt in, you're committed for a while.
So calculate it both ways before signing up. The exact turnover threshold and conditions are on the Belastingdienst's website.
Selling a Horse: Trading and Margin
If you sell a horse now and then, that can already count as trading. On a sale, you charge VAT on the sale price in principle, and you can deduct the VAT on purchases and costs.
If you buy a horse from a private individual (no VAT on the invoice) to resell it, the margin scheme (margeregeling) can come into play: you then only pay VAT on your margin — the difference between purchase and sale price — instead of on the full sale price. That makes a difference, but it places strict demands on your bookkeeping: the purchase and sale must be traceable per animal. If you sell abroad, different rules apply again (an EU supply or export), where a 0% rate often applies provided you record the correct documents.
Practical Approach
The VAT side of a stable or horse business is manageable as long as you get the basics in order early:
- Determine whether you're liable for VAT before you send your first invoice. Request a preliminary consultation with the Belastingdienst if needed.
- Register with the Kamer van Koophandel (KvK, the Dutch Chamber of Commerce) if you start a business; your VAT registration follows from that.
- Check your rate per activity and per package — boarding, lessons, training, and trading can each work out differently.
- Calculate the KOR both ways before opting in, especially with larger investments.
- Bring in a tax advisor who knows the horse sector; rates and thresholds change periodically.
For the exact rates, thresholds, and conditions for this year: consult the Belastingdienst. Terms like boarding and training are explained in the glossary.
See also: VAT and Tax for Horse Businesses in the Netherlands · What horse riding costs · Level: Considering Your Own Horse