Serbia changes 10% hotel VAT proposal
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|