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Serbia changes 10% hotel VAT proposal

  • Dec 13, 2013 | Richard Asquith

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

CountryHotel VATStandard VAT
Austria10%20%
Belgium6%21%
Bulgaria9%20%
Cyprus5%15%
Czech Republic10%20%
Denmark25%25%
Finland9%23%
France5.50%19.60%
Germany7%19%
Greece6.50%23%
Hungary18%25%
Ireland9%23%
Italy11%22%
Malta7%18%
Netherlands7%21%
Norway8%25%
Poland8%23%
Portugal6%23%
Slovenia8.50%20%
Spain10%21%
Sweden12%25%
UK20%20%

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara