Serbia switches to 10% hotel VAT proposal

Mon 23rd Dec 2013

Serbia has changed proposals to raise VAT on hotel accommodation from the current reduced rate of 8% to 20%.  Instead, it is planned to increase the rate to 10%.

It was concluded after extensive lobbying from that the hotel industry that a rise to the standard VAT rate of 20% would present the hotel industry with too much of a shock.

The reduced VAT rate of 8% is to be scrapped except for foodstuffs from 1 January 2014, and most goods are to be reclassified to a new 10% reduced VAT rate.

Many countries across Europe charge reduced VAT rates on hotels and tourism.  This includes Ireland, which recently extend its reduced VAT rate of 9% for a further period.  Below is a summary of the main countries and different hotel vs. standard VAT rates

Country     Hotel VAT     Standard VAT
Austria

10%

20%

Belgium

6%

21%

Bulgaria

9%

20%

Cyprus

5%

15%

Czech Republic

10%

20%

Denmark

25%

25%

Finland

9%

23%

France

5.50%

19.60%

Germany

7%

19%

Greece

6.50%

23%

Hungary

18%

25%

Ireland

9%

23%

Italy

11%

22%

Malta

7%

18%

Netherlands

7%

21%

Norway

8%

25%

Poland

8%

23%

Portugal

6%

23%

Slovenia

8.50%

20%

Spain

10%

21%

Sweden

12%

25%

UK

20%

20%