Medway Travel enewsletter December 2009
Germany to cut hotel tax
Future savings on trips to Germany?
Business and leisure travel to Germany could soon become less expensive if the government gets its way. It wants to help the beleaguered accommodation industry by cutting the rate of VAT on hotel rooms from 19 to just 7 per cent starting on January 1 next year.
Like their counterparts elsewhere in Europe, Germany’s hoteliers are suffering during the economic downturn and have many empty rooms to fill. In the first seven months of this year, the average occupancy at German hotels was just 57.8 per cent which is one of the lowest figures in Europe.
However, although the government is behind the tax reduction, the change must be ratified both by the Bundestag( the lower house of parliament) and the Bundesrat ( the representative of Germany;s 16 federal states).
If it does go ahead, Germany's hotel tax cut will happen on the same day when the UK increases its VAT on hotel bills from 15 to 17.5 per cent.
