The Dutch tax office is delaying the implementation of a portion of its new Value Added Tax (VAT) system due to concerns about reliance on US-based companies. The delay centers on the system’s component responsible for verifying VAT identification numbers. Officials expressed worries that outsourcing this crucial function to American firms could compromise Dutch sovereignty and data security. The postponement allows the Belastingdienst time to develop an in-house solution, ensuring greater control over the verification process. This decision follows mounting pressure from parliament and privacy advocates regarding the potential for foreign access to sensitive financial data. The agency maintains the overall VAT modernization project remains on track, with other components proceeding as planned. A new timeline for the delayed portion has not yet been announced, but the Belastingdienst emphasized its commitment to a secure and independent system.