- The ECJ has confirmed that Germany’s apportionment requirement for accommodation services is compatible with EU law.
- The requirement allows ancillary services not directly related to accommodation (e.g., parking, breakfast, Wi-Fi) to be taxed at the standard VAT rate, even if the main accommodation service qualifies for a reduced rate.
- The ECJ ruled that Member States can apply different VAT rates to specific aspects of accommodation services if clear, objective, and precise criteria are used.
- This decision ends the legal debate and upholds Germany’s current VAT practice for hotels and guesthouses.
Source: kmlz.de
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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