- The BFH followed the ECJ in confirming that the German VAT “apportionment rule” for hotel services is compatible with EU law: only the accommodation element can benefit from the reduced VAT rate under Sec. 12(2) No. 11 UStG.
- Hotel breakfast services are not covered by the reduced VAT rate and are subject to the standard rate; this does not violate EU law.
- Before applying any VAT rate, it must first be determined whether a taxable supply exists at all, especially for ancillary services.
- For parking provided to hotel guests, the BFH addressed both the taxability of the parking service and how its taxable scope may be estimated.
Source: datenbank.nwb.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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