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% |
