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Serbia changes 10% hotel VAT proposal


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
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%

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.