Slovakia has reduced the VAT rate for hotels and similar accommodation services from the previous rate of 20% to the current 10% rate. This measure has come into effect from January 1st, 2019, approved by the Slovak parliament.
The scope of this 10% rate will be extended to cover all types of accommodation services, including the following:
- Hotels accommodation and similar services
- Use of campsites
- Tourist short-stay accommodation and similar services
- Other accommodation services like boarding schools and students accommodation and hostel accommodation for workers
Following on the similar steps taken by Austria and Romania, Slovakia plans to emulate similar measures taken for the purpose of revitalising the demand in the tourism sector and boosting the hospitality industry.
What does this mean for you?
For businesses in the hospitality industry specific to accommodation services, this reduced VAT rate from 20% to 10% is a boon and will represent a significant savings to the business.