European hoteliers and caterers have launched an initiative to reduce VAT to 5 percent

first_imgHOTREC, FoodDrinkEurope and FoodServiceEurope, European professional associations of hoteliers and caterers, have sent an initiative to the EU institutions to temporarily reduce the VAT rate in the hospitality sector in order to mitigate the impact of the COVID-19 crisis. Evidence from across Europe to date shows that reduced VAT rates for hospitality are one of the most effective measures to support employment, stable consumer prices, investment and economic resilience, with limited impact on public finances, hoteliers and caterers say.  Several EU Member States (Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Greece) and other European countries (UK, Norway) have already introduced temporarily reduced VAT rates for tourist services, and this initiative further encourages the EU to support reduced rates VAT. Find out more in the attachment. The document highlights why reduced VAT rates are an important and very effective support measure at this time, and aims to give a strong signal to the national governments of EU Member States and allow temporary flexibility under the existing EU VAT Directive, in order to Member States could set a reduced rate of 5 percent for travel services. Photo. Tom Balabaud, Side dish: Temporarily reduced VAT rates for hospitality services Effective and immediate relief for crisis-stricken sectorslast_img

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