The supportive measures of the stimulus package agreed between Germany’s governing parties include the reduction in VAT for hoteliers, which will come into force this Wednesday. It will be temporarily reduced until December 31. The VAT rate will be cut from 19% to 16% and the reduced VAT rate – from 7% to 5%.
There is also a further reduction in VAT for restaurateurs. The Federal Government has already launched it in April: a one-year reduction in VAT for dishes in the catering trade and in hotel restaurants. However, beverages are not exempt from this tax cut.
Meals: From July 1, 2020 to December 31, 2020 – a reduction from 19% to 5%. From January 1 to July 30, 2021 – 7%. This rule also applies to catering of events.
Drinks: From July 1, 2020 to December 31, 2020 – a reduction from 19% to 16%. Starting from January 1, 2021, the tax of 19% will apply again.
Overnight stays: From July 1, 2020 to December 31, 2020 – taxation is at 5% and from July 1 – at 7% again.
Dehoga Bayern points out that there is still no statement from the Federal Ministry of Finance on the regulation regarding hotel breakfast.
How to maintain tax rates in the HotelFriend system
1. Room bookings and arrangements: Settings -> General settings -> Change.
2. Services: Settings -> Services -> Categories tab -> Select and edit category -> Change.
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Stay tuned, keep safe and connected during and after the outbreak.
Public relations: Stephanie Moench
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