The Dutch government has decided to further tighten the coronavirus measures, including extending the current lockdown and introducing a curfew. This way, the government wishes to prevent the further spread of the coronavirus, while the vaccination process is now in full swing.
Despite the many adjustments and creative solutions from entrepreneurs, they are often, directly or indirectly, deeply affected by these coronavirus measures. In order to continuously support entrepreneurs in these difficult times, the government is further expanding the support and recovery package in the first and second quarters of 2021. The government indicates that 7.6 billion euros will be allocated for this expansion of the support and recovery package.
The government has decided to expand the Fixed Cost Allowance (TVL) for the first and second quarters of 2021. On the one hand, companies will be entitled to more TVL support and on the other hand, more companies will have access to TVL support. Among others, the following support measures will be implemented:
- increase of TVL subsidy rates;
- opening up the TVL for (medium) large enterprises;
- increase of the maximum TVL subsidy;
- increase of the minimum TVL subsidy; and
- extended and increased stock allowance for closed retailers.
Increase of TVL subsidy rates
Beforehand, the subsidy rate increased from 50% in the case of 30% loss of turnover to 70% in the case of 100% loss of turnover. The subsidy rates will now be increased to 85% for a loss of turnover of 30% or more.
Opening up the TVL for (medium) large enterprises
The TVL is now also available for medium and large enterprises. The TVL will now also be open to non-SMEs. The limit of a maximum of 250 employees will therefore be abandoned.
Increase of the maximum TVL subsidy
Given the increase in subsidy rates and the opening up of the TVL to non-SMEs, the maximum quarterly TVL subsidy amount will be increased from EUR 90,000 to EUR 330,000 starting in the first quarter of 2021. For non-SMEs, the maximum TVL subsidy amount is set at 400,000 euros. 
Increase of the minimum TVL subsidy
In order to better support small entrepreneurs, who are often hit particularly hard by the current lockdown, the minimum TVL subsidy amount goes up from 750 euros to 1,500 euros. 
Extend and increase stock allowance for closed retailers
The stock allowance for closed retailers will be extended to the first quarter of 2021 and will also be increased. The stock allowance consists of a 21% mark-up on the fixed charge percentage in the TVL (previously this mark-up was only 5.6%). The stock allowance has its own maximum subsidy amount of 200,000 euros and is excluded from the maximum subsidy amount mentioned above.
The previously proposed phasing out approach of the support and recovery measures will be abandoned by the government for the second quarter of 2021. Instead of phasing out, the support and recovery measures from the first quarter will be largely carried over to the second quarter. The generic expansion of the TVL will therefore also apply in the second quarter of 2021.
For the elements in the support and recovery package that are not affected by the loss of turnover percentage, the necessary adjustments will be assessed on a quarterly basis. This also applies to the increased stock allowance for closed retailers, which, in principle, applies only to the first quarter of 2021.
Together with the other measures in the support and recovery package, such as the increase in the NOW subsidy rate to 85%, the extension of the period during which entrepreneurs can apply for a tax deferral or an extension of the deferral, and other tax measures, the government is attempting to continue to support entrepreneurs and accelerate economic recovery. We recommend checking whether your company qualifies for the expanded TVL and/or one of the many other support measures. We will, of course, be happy to discuss this with you.
 Medium-sized agricultural and horticultural businesses are not eligible for the increase in the maximum subsidy amount due to European regulations in this regard. The government is working on an alternative arrangement for this group.
 Small business owners sometimes do not qualify for the TVL because their fixed costs are too low (below €3,000 per quarter). The government is exploring whether this threshold of €3,000 per quarter can be lowered.