Restrictions on Reduced Taxation of Accommodation Services: EU Law Implications and Challenges

• Introduction of reduced taxation for accommodation services under § 12 Abs. 2 Nr. 11 UStG
• Limitation of the tax reduction for services directly related to accommodation
• Initial understanding that breakfast may be considered an ancillary service taxed at 19%
• BMF letter of 5.3.2010 addressing the division requirement
• Inclusion of parking spaces in the tax calculation
• BFH ruling of 24.4.2013 considered the tax treatment as compliant with EU law
• Doubts raised regarding compliance with MwStSystRL after ECJ ruling of 18.1.2018

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.