Serbia changes 10% hotel VAT proposal

Sat 14th 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 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%