VAT and Cash Payments for Horses in 2026: Rules for Buyers and Sellers

A new calendar year brings new ground rules. Anyone buying or selling a sport horse in 2026 will, at the very least, have to deal with one concrete change in the law: the ban on cash payments of €3,000 or more. On top of that, there are tax and transport rules that you will feel directly in your net proceeds or purchase price. In this article we set out what changes from 1 January 2026, what stays the same, and how, as a buyer or seller, you can move through the season cleanly and without any tax surprises.

Quick overview: what's new in 2026

• Cash ban ≥ €3,000. From 1 January 2026, professional sellers may no longer accept cash amounts of €3,000 or more. Above the threshold, payment must be made by bank transfer or card.
• VAT on the sale of a sport horse remains 21%. The planned increase of several horse-related services to 21% has not been brought in for 2026 — riding lessons and livery still fall under the 9% rate.
• Self-employed tax allowance cut from €2,470 to €1,200. Good news for the Treasury, less so for dealers and sole-trader businesses in the equestrian sector.
• New income-tax bands. Band 1 up to €38,883 (35.70%), band 2 up to €79,137 (37.56%), band 3 above that (49.50%).
• Transport becomes more expensive. The BPM exemption for new diesel and petrol vans is being scrapped, the quarter-rate road tax for horse transporters is coming to an end, and from 1 July 2026 a per-kilometre charge will apply to vehicles over 3,500 kg.

Cash ban above €3,000: the biggest practical change

The most eye-catching change for the horse trade is the ban on cash payments of €3,000 or more. Until the end of 2025, paying in cash was still legally possible, aside from the reporting obligation on large amounts. From 1 January 2026, sellers acting professionally may no longer accept cash sums of €3,000 or more — regardless of whether they are paid in one go or in instalments.

Why this matters especially for the horse market

Sport horses almost always change hands above that threshold. A well-bred young dressage or showjumping horse quickly sits between €10,000 and €40,000; internationally trained horses go many times higher. Historically, a large share of those transactions was settled partly in cash, often around the time of delivery. From 2026 that is no longer possible where the seller is a dealer or stud.

How to handle it properly

• Agree a bank transaction as the main method and arrange proof of payment before delivery.
• Combine a bank-transfer deposit with a watertight purchase agreement that clearly sets out the horse, any faults and the purpose of purchase.
• Card payment can be a solution when handing over at the yard, provided the seller has a card terminal. Many dealers are switching to this in 2026.
• For exports or an international buyer: opt for a verified bank transfer or an escrow service; keep the SWIFT/IBAN confirmation on file.

Tip for sellers: state explicitly in your advertisement and purchase contract that payment is made by bank transfer. That avoids any haggling over cash on the day of delivery.

VAT on the sale of a sport horse in 2026

When buying or selling a horse, the VAT question has been front of mind for business owners for years. The planned tightening that would have moved still more horse-related services to 21% was not passed by the lower house of parliament for 2026. In concrete terms:

• A sport horse sold by a business: 21% VAT. This is the standard situation for competition horses and working horses.
• 9% VAT still applies in the narrow situation where the horse is demonstrably intended for slaughter or is used solely for breeding.
• Riding lessons, schooling lessons for riders and livery: 9% remains.
• The sale of horse feed and additional training falls under 21%.

A 75/25 or 50/50 split: a breeding stallion or broodmare

The tax authorities apply fixed splits for horses that are used for mixed purposes:

• Breeding stallions: 75% of the sale price under 9% (breeding function), 25% under 21% (sport).
• Broodmares: a 50/50 split between 9% and 21%.

These percentages are a guideline — a reasoned departure from them is allowed, provided it is well substantiated in the purchase contract and the business records.

Substantiation, or the taxman recalculates

The key tax point: anyone applying the lower 9% rate must be able to demonstrate why. If the tax authorities reach a different conclusion, the seller is landed with the difference up to 21% after all. Practical supporting evidence:

• A bespoke purchase agreement that explicitly states the intended use (slaughter, breeding, mixed).
• Studbook papers and predicate codes that support the breeding purpose.
• Additional documentation such as covering licences or a sales history as a breeding horse.

What if you sell privately?

If you sell your own sport horse privately — without trading on a regular basis — then in principle VAT does not come into play. You charge no VAT on the sale price and need not file a VAT return for the transaction. Be careful, though:

• Anyone selling several horses a year can be classified by the tax authorities as a business for VAT purposes. From that point on, the rate rules from the previous section apply.
• The cash ban above €3,000 strictly applies to professional transactions; even with a private sale, however, it is wise not to settle large amounts in cash.

Selling inside and outside the EU: 0% VAT with conditions

For an international seller, a Dutch buyer is rarely the only option. SportHorses horses often go to Germany, Belgium, France or further afield. The rules in 2026:

• B2B within the EU: 0% VAT is possible when the buyer holds a valid VAT identification number, this appears on the invoice, and you can prove the cross-border transport.
• B2C within the EU: Dutch VAT in principle; once the distance-selling threshold is exceeded, VAT of the destination country applies.
• Export outside the EU: 0% VAT provided the horse is genuinely and continuously exported. If the animal stays in the Netherlands for a while for training, the 0% rate no longer applies.

In every case: keep CMR/transport documents, health certificates and a copy of the buyer's VAT number for at least seven years.

Other tax changes that affect you

Lower self-employed tax allowance

The self-employed tax allowance falls further, from €2,470 in 2025 to €1,200 in 2026. For dealers, instructors and self-employed riders, that means a higher taxable profit on the same income.

New income-tax bands

• Band 1 up to €38,883: 35.70%
• Band 2 €38,883 – €79,137: 37.56%
• Band 3 above €79,137: 49.50%

Transport costs are rising

For anyone who drives their own horse transporter or arranges transport regularly:

• The BPM exemption for new diesel and petrol vans is being scrapped; only zero-emission vehicles remain exempt.
• The quarter-rate road tax for horse transport vehicles is ending; from January 2026 the full rate applies.
• From 1 July 2026, a per-kilometre charge will apply to vehicles over 3,500 kg, including a compulsory On-Board Unit.

Factor those higher transport costs into your asking price or bidding strategy in 2026 — particularly on long-distance deliveries.

What isn't changing?

A few important things stay the same, and that is good sale news for the market:

• 9% VAT on lessons and livery remains.
• The pre-purchase exam remains the norm — no change in law, but there is an updated radiography guideline from Germany that is also widely followed in the Netherlands.
• Identification and passport: the microchip and passport requirements remain unchanged. Make sure the passport comes with the horse at handover.
• Transport rules for commercial journeys (rest periods, space) continue to apply under the updated EU frameworks.

Checklist for sellers in 2026

• Agree a bank transaction from the very first euro when the sale value is above €3,000.
• Purchase contract with intended use, faults, price and method of payment.
• Solid substantiation for 9% VAT if you use that rate — studbook, predicate codes, written declaration.
• Keep export documents for 0% VAT deliveries.
• Allow for the €1,270 lower self-employed tax allowance in your net margin.
• Build higher transport and road-tax costs into your asking price.

Checklist for buyers in 2026

• Ask for a bank account number for the deposit and the balance. No cash above €3,000.
• Read the purchase contract: are the VAT rate, the use and the warranty arrangements set out properly?
• Ask about the pre-purchase exam and any radiographs taken under the current German guideline.
• Factor in input VAT if you use the horse for business and are VAT-registered.
• Plan transport well in advance; new charges and the OBU requirement could lead to waiting times with hauliers.

Frequently asked questions

Is the VAT rate on the sale of a sport horse changing in 2026?

No. The sale of a sport horse by a business still falls under the standard rate of 21%. Additional increases for the equestrian sector have not been brought in for 2026.

Can I still buy or sell a horse for cash?

Amounts under €3,000 may still be paid in cash. From €3,000 onward, professional sellers may no longer accept cash payment — neither in one go nor in instalments. Even with a private sale, a bank transaction is strongly recommended.

What documentation do I need for the 9% rate on a breeding horse?

An itemised purchase contract stating the breeding purpose, studbook papers, any predicate codes and — in the case of stallions — covering licences. Without substantiation, the tax authorities can still levy 21% after the fact.

Does the cash ban also apply between private individuals?

The ban is aimed primarily at professional sellers. For the sake of fraud prevention and evidence, however, it is also wise between private individuals not to settle sport horses in cash.

What if I sell my horse to Germany or Belgium?

With a B2B sale within the EU, 0% VAT is possible if the buyer holds a valid VAT number, it appears on the invoice and you can prove the cross-border transport. Keep CMR documents, health certificates and the invoice for at least seven years.

Conclusion

For the Dutch horse market, 2026 brings no major VAT rise on the sale of sport horses, but it does bring a definitive end to large cash transactions and considerably more expensive transport. Anyone who gets their administration, purchase contract and payment process in order now will sell without tax surprises down the line — and buy without unexpected delays or back-tax bills.

Browse the current range of sport horses on SportHorses.nl and plan your purchase or sale in 2026 without surprises.