- German Federal Fiscal Court (BFH) refers three cases to CJEU on VAT apportionment for accommodation services
- Question is whether the “apportionment requirement” for supplies of accommodation services under German VAT Act is in line with EU VAT directive
- Accommodation services subject to reduced VAT rate of 7%, while ancillary services subject to standard rate of 19%
- Previous BFH rulings found breakfast services and parking facilities not subject to reduced VAT rate
- CJEU has doubts on apportionment requirement contradicting EU VAT law
- Preliminary ruling requests consider exclusion of services not directly facilitating short-term accommodation from reduced VAT rate
- German tax authorities rejected hoteliers’ view on ancillary services, leading to referral to CJEU
- Taxable persons providing services under apportionment requirement should consider lodging objection with tax authorities and applying for suspension of enforcement.
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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