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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12 Jan
12/01/2023    
11:00 - 12:00
Slides are accessible here: https://www.hotrec.eu/wp-content/uploads/2023/01/Presentation-HOTREC-workshop-on-PPWR-120123.pdf
7th Coordination Meeting Pact for Skills in Tourism
12/01/2023    
15:00 - 16:30
On 12 January 2023 took place another coordination meeting of the Pact for Skills.
19 Jan
19/01/2023    
All Day
HOTREC has joined the RESTWITHEU project focusing on challenges faced by the restaurant industry. First workshop will be held in Lyon on 19/01/2023.
Meeting with DG GROW - Tourism Unit & HOTREC
24/01/2023    
14:00 - 15:00
Main outcome of the meeting available
25 Jan
25/01/2023    
09:30 - 13:00
Hotel Le Chatelain, Brussels EXCOM Slides - 25 Jan. 2023 - NEW List of Participants Expense Claim Template for ExCom Members HOTREC Guidelines for reimbursement [...]
Info session - EU funding opportunities on trainings to be provided to third country nationals’ willing to work in the hospitality sector
26/01/2023    
11:00 - 12:00
Recording of the session; PowerPoint and general note of the meeting available!
Events on 19/01/2023
Events on 24/01/2023
Events on 25/01/2023