Benefits of low and long-term VAT launched by HOTREC

Published on : Wednesday, May 10, 2017

VAT launched by HOTRECHOTREC launched its report on the benefits of low VAT on job creation and competitiveness in the EU, which demonstrates the catalyst effect of low VAT on job creation, investment and growth, promoting Europe’s competitiveness.

The long-term application of low VAT rates on hospitality services, which almost all Member States apply to accommodation and 2/3 to restaurant services, is pivotal to sustain Europe’s competitiveness as a tourism destination.

To quote Taleb Rifai, the UNWTO Secretary-General, “We much welcome this report by HOTREC, as we trust it will provide an important contribution to the ongoing discussion on tourism taxation and its impact on the sector’s capacity to contribute to economic growth and job creation” He added, “All tourism taxation policies should be carefully measured, modelled, monitored and assessed.”

Susanne Kraus-Winkler, President of HOTREC said, “Keeping VAT for hospitality and tourism services low is crucial for the competitiveness of European tourism and its 2 million SMEs (1.8 for the hospitality sector), 91% of which being micro-enterprises”.  She added, “Low VAT must remain the long-term regime for such services especially as already 25 out of 28 EU Member States apply a reduced rate to tourist accommodation services and almost 2/3 to restaurant services.”

To quote Christian de Barrin, CEO of HOTREC, “This broad support coming from leading tourism stakeholders demonstrates the essential role of low VAT for the sector, which is already heavily regulated and taxed. The HOTREC report clearly shows that low VAT foster jobs and growth and stalling investments”.

HOTREC represents the hotel, restaurant and café industry at European level. This industry includes around 1.8 million businesses, of which 99% are small and medium sized enterprises.  HOTREC brings together 41 national associations representing the sector in 29 different European countries.


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