Reduced tax rate on overnight stays

General information

Subject to the reduced tax rate of 10 per cent are

• accommodation in furnished living rooms and bedrooms and the ancillary services often associated therewith (including providing a customary local breakfast, which is included in the accommodation fee) and
• rental of land for camping purposes and the ancillary services often associated therewith, which are included in the fee for use.

Establishments affected

The reduced rate of 10 per cent applies both in the case of commercial accommodation in hotels, guest houses, etc. and also – where the accommodation requirements are met – in the case of the private rental of rooms and the leasing of holiday homes and apartments.

The simple leasing of premises, including the typical ancillary services associated therewith, cannot be regarded as accommodation. Accommodation also includes a certain degree of care for the premises leased or for the guest. This includes, for example, cleaning the premises and the bed linen and towels as well as heating, cooling and ventilation. The additional provision of services must allow the guest to temporarily stay in one place without extensive provisions of their own.

A camping establishment includes the hire of floor space for the tent, caravan and car, including the associated ancillary services. The hire of camp sites to park vehicles outside the camping season (e.g. in winter, when people are not camping) does not receive the reduced rate.

Ancillary services subject to the reduced rate

The ancillary services often associated with accommodation also include providing a customary local breakfast, where the price of this breakfast is included in the accommodation fee. Alcoholic drinks are not included in a customary local breakfast.

The provision of seminar rooms cannot be deemed to be a beneficiary ancillary service to accommodation, simply because the rooms are usually let to an event organiser and not to individual hotel guests.

A range of services, which are usually included in all-inclusive packages, can be classified as ancillary services that are usually associated with accommodation, where no separate fee is charged for this. In particular, all-inclusive includes the use of sporting facilities and drinks with the evening meal. Welcome cocktails are also often served by hotel operators, or hikes (ski tours) are undertaken with hotel guests.

In the case of camping, the provision of sanitary facilities and shared facilities, such as, for example, common rooms, and of electricity and water supply, cooking and ironing facilities, use of a beach, etc. is subject to the reduced tax rate. The reduced tax rate only applies, however, when a standard use fee is charged; this is usually made up of a site price and fee per person.

There is no reduced rate, for example, for the hiring of sporting facilities and sporting equipment, power supplies for technical equipment, etc., where a separate fee is charged for these services.