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VAT lowered to 7%

Germany will reduce taxes for hotels in 2010

Germany will reduce taxes for hotels in 2010

Oct 24, 2009

The new government of Germany will reduce VAT for overnight stays in hotels from 19 to 7% until from January 1, 2010, hotelier.com reported.

It's a great success for the hotel associations of Europes largest country. In Germany, from beginning of the next year the rate for hotel guest rooms will be charged with 7% VAT. Actually, the VAT for hotels is 19%.

The higher tax rate will remain for restaurants despite of VAT reduces in nearly all other Western European countries from 5 to 10%.
Now, all hotels could concentrate on renovations and expansion, the German hotel associations DEHOGA and IHA said.



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