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Tourist Taxes

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A tax on European Tourism

Central government cutbacks have placed an onus on the need for local authorities to find new revenue streams. A consequence has been a spate of accommodation taxes, with many introduced at short notice in complete disregard to business planning cycles. These are damaging to the tourism industry and ETOA will continue campaign against their introduction. 

This research was undertaken in 2011 and is featured to demonstrate the widespread nature of such taxes, rather than to provide an up-to-date database.

A case in point
 
The tables below assess the impact of specific tourist taxes, national VAT, road tolls and parking fees on a sample 7 night tour of Italy. 

This first table shows how much hotel tax is levied on 2-star to 5-star hotels in our itinerary:-

 ITINERARY (no. of nights) TASSA DI SOGGIORNO x NO. of NIGHTS 
 2-star 3-star  4-star   5-star
 ROME (3 nights) € 6.00 € 6.00 € 9.00 €  9.00
 FLORENCE (2 nights) € 4.00 € 6.00 € 8.00 €10.00
 VENICE (2 nights) € 4.00 € 6.00 € 8.00 €10.00
 TOTAL TASSA DI SOGGIORNO (per person) €14.00 €18.00 €25.00 €29.00

Using 3-star hotels costing  €80 per person per night, this next table adds the amount of Italian VAT levied and coach parking fees typically associated such an itinerary (totalling €1250):-

 HOTEL TAXES + PARKING  GROUP SIZE / PASSENGER RANGE
 15-19 20-24 25-29 30-34  35-39   40-48
 TASSA DI SOGGIORNO (3-star hotels) €18.00 €18.00 €18.00 €18.00 €18.00 €18.00
 * ITALIAN IVA (10%) on 7 nights at €80 €56.00 €56.00 €56.00 €56.00 €56.00 €56.00
 PARKING (€1250 divided by 15, 20, etc.) €83.33 €62.50 €50.00 €41.67 €35.71 €31.25
 TOTAL PER PERSON €158 €137 €124 €116 €110 €106
 * The reduced IVA rate of 10% applying to hotels, was due to rise to 12% in October 2012.

 

VAT / IVA snapshot

Whilst we are going to be focusing on localised accommodation taxes, it is worth contemplating the role VAT plays in the make-up of hotel rates. There have been several hefty increases in recent achieved with an element of smoke and mirrors by reclassifying hotels from "Reduced" to "Standard" categorisation.   

The TMF Group have a comprehensive VAT website. The immediate focus is on Standard VAT rates, but if you dig deep enough you will find out the requisite information for Reduced VAT rates, which is more germane to hotel accommodation.

Country by country

Click on the button below for details in that country of what hotel taxes apply or any news stories pertaining to proposals for such:-