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VAT lowered to 7%

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, 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.

Germany will reduce taxes for hotels in 2010

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