Threshold amounts

Threshold amounts

When the value of a specific public contract exceeds the threshold amount, a tender procedure must be initiated pursuant to the European Procurement Directive. Different threshold amounts apply to works, supplies, and services. These threshold amounts are set every two years.

If the value of the contract is below the threshold, the contracting authority will only be required to adhere to the principles of the Public Procurement Directive. The manner in which the contracting authority may issue the contract may vary depending on the situation. In this regard, consideration must also be given to the national Public Procurement Act and the Proportionality Guide.

The current threshold amounts for 2026-2027

The European Commission sets new threshold amounts every two years. For the period from 1 January 2026 to 31 December 2027, the amounts have been reduced compared to the previous period on the basis of Delegated Regulation (EU) 2025/2152 to Directive 2014/24/EU. For traditional public sector entities, the following apply (excluding VAT):

• Work: €5.404.000
• Supplies and services of the central government (State): €140.000
• Supplies and services from decentralized authorities (municipalities, provinces, water boards): €216.000
• Social and other specific services: €750.000
• Concession contracts for works and services: €5.404.000

If the estimated value of a contract is equal to or higher than the applicable threshold amount, a European tendering procedure is mandatory. The reduction means that contracts that remained just below the threshold in 2025 must still be tendered at the European level in 2026. It therefore pays to review ongoing and planned procurement processes.

How is the value of an assignment estimated?

Whether a contract falls above or below the threshold depends on the estimated value — not on the final award price. The contracting authority makes this estimate, excluding VAT, at the time of dispatch of the notice or the start of the procedure. When making the estimate, you must include the full duration, including options for extension and any lots that are functionally or economically linked. Works with the same economic or technical function are considered as a single contract, whereby the values ​​of the individual lots are combined. An estimate that is too low or inaccurate is a classic source of disputes: an entrepreneur who misses out can successfully argue that (European) tendering was incorrectly not carried out.

The ban on splitting: do not artificially split assignments

A contracting authority may not split a contract with the aim of remaining below the threshold value and thereby evading the obligation to tender. This artificial splitting is prohibited under Article 2.14 of the Public Procurement Act 2012. Splitting or, conversely, clustering is only permitted if there are objective, business reasons for doing so — for example, when components are not technically or economically dependent on one another, or when execution in a single stage would be financially irresponsible. If lots are put on the market simultaneously, the combined value of all lots is decisive. For an undertaking that believes a contract has been wrongly split, the prohibition on splitting offers a concrete basis to challenge the proceedings. Conversely, unnecessary clustering can actually disadvantage small and medium-sized enterprises, which the Public Procurement Act and the Proportionality Guide aim to prevent.

Assignments below the threshold: what rules apply?

Even below the threshold amounts, a contracting authority is not free. The general principles of procurement law—equal treatment, transparency, and proportionality—continue to apply. Pursuant to Article 1.4 of the Public Procurement Act 2012, the choice between a single-source negotiated procedure (one offer), a multiple-source negotiated procedure (usually three to five candidates), or a national procedure must be based on objective criteria, which must be justified in writing upon request. The Proportionality Guide provides guidelines in this regard. If a contract has a clear cross-border interest—consider value, place of performance, and potential interest from businesses in other EU Member States—an appropriate degree of transparency is still required. Consequently, disputes regularly arise even below the threshold, for example regarding the choice of procedure or an overly limited invitation of candidates.

What MKB Juristen can do for you

Threshold amounts may seem like a simple calculation, but in practice, the devil is in the estimation, the prohibition on splitting contracts, and the choice of procedure. At MKB Juristen, lawyers and (corporate) legal counsel work together to address both the legal maneuvering and the practical reality of procurement. We assist contracting authorities—from international corporations and (semi-)governmental bodies to the local baker bidding for a local contract—as well as entrepreneurs who believe a contract has been wrongly not tendered or has been tendered incorrectly. We assess whether a contract is subject to tendering requirements, review the estimation and the procedure applied, and assist you in negotiations or proceedings. This page is part of our expertise in Public Procurement Law; read more about the tendering obligation and about objecting to an award decision.

Frequently asked questions about threshold amounts

How often do the threshold amounts change?

The European Commission recalculates the threshold amounts every two years. The current amounts apply from 1 January 2026 to 31 December 2027.

Does VAT apply when determining the threshold amount?

No. The estimated value of the assignment is always calculated excluding VAT and compared with the threshold amount.

May a municipality split an assignment to stay below the threshold?

No. Artificial splitting to evade the obligation to tender is prohibited under Article 2.14 of the Public Procurement Act 2012. Splitting is only permitted for objective, business reasons.

Do rules apply below the threshold amounts?

Yes. The principles of equal treatment, transparency, and proportionality continue to apply, the Proportionality Guide provides guidance, and transparency is still required in the case of a cross-border interest.