This applies to accommodations such as hotels, hostels, and holiday parks. Campsites are, for now, excluded from this change. Due to objections from Koninklijke Horeca Nederland (KHN), the amendment is being reconsidered. However, we notice that there are many questions about what this increase means and how to set it up in RevControl. Our advice is not to let the VAT increase affect your profit margin, but to fully pass it on in the room price. In this blog, we show you how to prepare this in RevControl and how to easily reverse it if the law is adjusted after all.
Our advice
We recommend passing the full VAT increase on in your room rates so that your profitability does not suffer. By applying the change now for all reservations in 2026, you ensure that bookings made for next year already account for 21% VAT and are priced correctly. Keep in mind that some municipalities will also adjust the tourist tax in addition to the VAT increase. You can set the VAT change in RevControl, but you manage the tourist tax in your reservation system. The prices that RevControl sends are therefore inclusive of VAT and exclusive of tourist tax.
Step by step in RevControl
1. Adjust the Occupancy Based Rate via Minimum Rates
To apply the increase for the Occupancy Based Rate, first go to Minimum Rates. These are set per room type or for the entire property.
- Increase the minimum prices by 12% so the VAT increase is fully passed on.
- On top of the Minimum Rates, RevControl adds the Occupancy Supplements based on Forecast.
- Check the Occupancy Supplements. Despite the higher VAT, you want profit margins to remain the same. When you raise the minimum prices by 12%, the VAT increase is fully included in that base price. The Occupancy Supplements are not adjusted automatically. As a result, the relationship between the higher minimum price and the supplements changes. Because the supplements are a fixed amount on top of the minimum price, this can cause your margin the relationship between revenue and costs to shift.
An example: suppose the minimum price was €100 with a supplement of €20 at 80% Forecast. After the VAT increase, the minimum price becomes €112, but the supplement remains €20. That supplement is then relatively less valuable 18% instead of 20%, which means the margin at the same Forecast is lower. We therefore advise that after raising the Minimum Rates, you recalculate the Occupancy Supplements margins and increase them if necessary.
2. Check the Competitor Based Rate
For the increase of the Competitor Based Rate, first go to the Rates Table and see whether competitors have already adjusted their prices for 2026.
- Have all competitors applied the VAT increase? Then you do not need to do anything. RevControl will automatically adjust the Competitor Based Rate including the VAT increase based on the ranking in the Competitor Index.
- Are competitors still at the same level? Create an event for the period 1 January through 31 December 2026 with a percentage increase and select Supplement for the Competitor Based Rate. Monitor daily how competitors adjust their prices for 2026 and lower the percentage of your event as more competitors implement the increase. Once the market has fully moved, you can remove the event.
3. Set an appropriate price ceiling with Maximum Rates
Also make sure your maximum rates are correct. With the help of our Customer Success team, you can activate Maximum Rates. This is a price ceiling that RevControl will not exceed. Increase these, just like the Minimum Rates, by 12%.
If the VAT increase is reversed, you can easily lower the Minimum Rates again and remove the event. But by preparing now, you avoid reservations being made at the lower VAT rate. With the steps above, you maintain control over your margins and competitive position. Not sure how to proceed? Our Customer Success team will be happy to help. Just send us a chat or an email!