HOTREC urges EU and Member States to support hospitality sector recovery with reduced VAT rates

 

HOTREC, FoodDrinkEurope and FoodServiceEurope have asked for support from the EU for temporarily reduced VAT rates in the hospitality sector in order to mitigate the impact of the COVID-19 crisis. A position paper co-signed by all three organisations highlights why reduced VAT rates are beneficial for hospitality and contract catering and an essential and highly effective measure of support to support the recovery of the sector in the aftermath of lockdown measures.

The position paper specifically urges the EU to:

  • support for reduced VAT rates and give a strong signal to the EU Member States’ national governments,
  • give temporary flexibility with regard to the existing EU VAT framework so that, if possible, EU Member States could set a reduced VAT rate of 5% for hospitality services.

Many sectors, including hospitality and contract catering, face exceptional economic difficulties and lack of liquidity amidst the COVID-19 crisis. Amongst these measures, several EU Member States (Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Greece) and other European countries (UK, Norway) have introduced temporarily reduced VAT rates for hospitality services. In certain cases, existing reduced rates have been further lowered for the hospitality sector.

The establishment of reduced VAT rates is first and foremost an issue for national governments, but the EU VAT Directive of 2006 sets a lower threshold of 5% for reduced VAT rates and allows EU Member State to have one or two reduced VAT rates.

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08 Sep
08/09/2023    
09:00 - 13:00
List of Participants Ms. Olga Kefalogianni, Greek Tourism Minister, will join us during the morning for an exchange (timing will be confirmed later) Draft Agenda [...]
Together for EU Tourism (T4T) stakeholder meeting
11/09/2023    
09:00 - 13:00
On 11 September 2023, the European Commission (DG GROW) will organise the first stakeholder event to support the co-implementation of the Transition Pathway for Tourism. This will be a hybrid event, taking place in Brussels and online.
Social Affairs Working Group meeting
12/09/2023    
10:00 - 12:00
On 12 September 2023, HOTREC will organise another meeting of its Social Affairs Working Group.
Members session on HOTREC European elections manifesto
14/09/2023    
10:00 - 12:00
On 14 September 2023, HOTREC will organise a members-only session to discuss the upcoming European Elections (June 2024). 
HOTREC Sectoral Social Dialogue Committee meeting
18/09/2023    
09:30 - 13:00
On the morning of 18 September 2023, HOTREC will organise another meeting of the Sectoral Social Dialogue (SSD) Committee. 
HOTREC Short-Term Rentals (STRs) Working Group meeting
21/09/2023    
10:00 - 11:30
On 21 September 2023, HOTREC will organise another meeting of its Short-Term Rentals Working Group.
Pact for Skills - Coordination meeting
21/09/2023    
15:00 - 16:30
On 21 September 2023 took place the 13th Coordination Meeting on the Pact for Skills - an initiative bringing together different skills national partnerships. The [...]
Social Dialogue reform - meeting with European Commission
27/09/2023    
09:30 - 12:00
Main outcome of the meeting available
Meeting MEP Engerer office - rapporteur Green Claims (ENVI)
28/09/2023    
10:00 - 11:00
Participants: - Sera Cutajar (assistant MEP Engerer (Malta/S&D - rapporteur ENVI committee / Green Claims file)) - S&D political advisor - Marta Machado Main outcome: [...]
Meeting MEP Weiss office - Green Claims
29/09/2023    
10:00 - 11:00
Outcome of the meeting available
Events on 08/09/2023
Events on 11/09/2023
Events on 12/09/2023
Events on 18/09/2023
Events on 29/09/2023