European professional organizations urge the VAT reduction of hospitality and tourism services

The European professional organizations urge long-term VAT reduction on hospitality and tourism services, because it would be the key to maintaining the competitiveness of Europe’s tourism – the Hungarian Hotels and Restaurants Association and the Confederation of Hotels and Catering Associations of the EU Member States (HOTREC) told MTI on Thursday.

According to the study of HOTREC, the introduction of low VAT rates both promotes job creation, growth and also boosts investments. Currently, 25 of the 28 Member States apply a preferential rate for accommodation services In 18 countries it is lower than 10 percent. In 17 Member States, a discounted VAT is applied, the lowest, 3 percent in Luxembourg. (MTI)