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.