1/5/2024 0 Comments Actual definitionSplit of the hotel price and applicable VAT rate no input VAT deduction limitation, no VAT revisions, …) Will any tolerance/threshold be foreseen avoiding any VAT leakage in the hands of the hotel manager (i.e.the pool, the restaurant, …)? Is the input VAT on furniture also to be adjusted? How are VAT adjustments on investments to be calculated? What with mixed investments such as common space (e.g.Is it likely that the real use method will be imposed or can hotel managers apply the general prorata?.taking into account the days the room is used for a VAT exempt rental on a total year)? Will the hotel managers need to limit their VAT deduction and if yes how is the limitation to be calculated (i.e.When offering long term hotel services, are the hotel managers to be considered as mixed taxable persons? Also in case the longer stays are only accidental?.Mixed VAT status and deduction limitations It however fails to address some important implications in the hands of the various players in the hotel sector when the duration of the stay of their guests indeed exceeds the forementioned three month period and leaves us sitting behind with a lot of unaddressed questions: The recently published FAQ on this topic provides some guidelines on very specific questions such as ‘what is to be considered as physical reception of guest’, ‘what if cleaning services are offered’, ‘what if related services are invoiced separately’, … The provision of at least one additional service (the so-called ‘related services’ such as breakfast, physical reception of guests, …) remains applicable. To distinguish between a taxed hotel service or an exempt immovable rent, a new quantitative criterion, being a consecutive occupation of less than three months, will be put in place. Such hotel services are subject to the 6% VAT rate.įrom 1 July 2022 onwards, the definition of what is to be considered as a hotel service will change. a house, an apartment or a studio) is in principle exempt from VAT with exception of certain transactions such as the provision of furnished accommodation in hotels, motels and establishments where paying guests are accommodated. The rental of immovable property by its nature (e.g. On 15 June 2022, the Belgian VAT Authorities published a new FAQ ( LINK) concerning the VAT treatment of the provision of furnished accommodation.Īlthough some (very) specific cases have been addressed, there is still a great deal of uncertainty around a number of VAT implications arising from the new regulation.
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