Denmark allows full deduction of hotel VAT 2015
- 8 September 2014 | Richard Asquith
Denmark is to allow companies, resident and non-resident, to recover the input VAT incurred on hotel accommodation. Currently, only 75% of Danish VAT incurred on hotel stays for business purposes may be reclaimed through a VAT return or a VAT reclaim (for non-resident companies). This will now become 100% from 1 January 2015.
This follows a similar move in 2014 when Denmark allowed 75% of restaurant VAT to be recovered instead of just 50%.
VAT reform from foreign competition
Other countries have been implementing similar moves, including Spain allowing reclaims for hotel VAT from non-EU countries from next year. This is aimed as helping the local events and congress industry compete with other EU countries which do already allow full recoverability.