The planned VAT reduce from 19% to 7% for overnight stays amounts a tax cutting of approximately 1 bn Euros. F&B services will be charged by 19% VAT furthermore. In German hotels, the annual turnover with food and beverages is 6.11 bn Euro in 2008 (-0,05% to 2007). The turnover of restaurant and bars (47.28 bn Euros) will be charged with the full VAT (19%) furthermore, too.
(Source: CHD Expert Germany - Destatis)
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