- The Federal Fiscal Court (BFH) has asked the European Court of Justice (ECJ) for clarification.
- The issue at hand is whether the VAT rate should be divided for ancillary services provided by a hotel.
- The reduced tax rate should apply to room rental, while the standard tax rate should apply to ancillary services.
- Ancillary services are those that cannot be added or removed and are included in the price.
- Examples of ancillary services include hotel parking, breakfast, fitness area, wellness area, and Wi-Fi.
- According to § 12 Abs. 2 Nr. 11 Satz 2 UStG, there is a requirement for division.
- The reduced tax rate only applies to room rental, not to ancillary services.
- Recent ECJ case law may suggest that the requirement for division violates European law.
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.
