Reduced VAT rate: apply it correctly in the hotel industry
Since January 2010, the reduced VAT rate has partially applied to hotels. However, this rate does not apply to all services of a hotel. For this reason, every guest should check that the correct VAT rate has been applied.
For which services the reduced sales tax applies
In January 2010 the value added tax for certain services of pensions and hotels was reduced:
- Overnight stays only have to be settled with the reduced VAT rate of seven percent.
- All other services such as breakfast, dinner or services from the minibar are still charged at the regular VAT rate of 19%.
How to apply the new VAT rate
Most hotels offer an overnight stay including breakfast. Of course, it is also possible to book half or full board in many hotels. Such postings are therefore mixed services that are taxable at different VAT rates:
- billsthat are issued for an overnight stay including breakfast must contain separate items for the overnight stay and for breakfast. This way it is easier to calculate the different VAT rates. But it is also much easier for the guest and his bookkeeping if the services are listed individually and thus also the different VAT rates individually are shown. Alternatively, of course, two separate bills can be created: One bill for the overnight stay and one bill for breakfast, dinner and other services.
- Services from the minibar are still to be charged at the normal tax rate of 19%.
- Other services such as washing clothes, room service or ironing must be charged at the normal VAT rate of 19%.
- The reduced VAT rate actually only applies to the overnight stay.
- The VAT rate of 7% applies to all houses that offer overnight accommodation. This includes not only hotels, but also pensions.
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