Extension of VAT reduction for hospitality services

Due to surging inflation in the country, Germany has extended the VAT reduction on hospitality services to 31 December 2023.

The VAT rate for hospitality services was initially reduced from19% to 7% and was due to expire on 31 December 2022.

We can expect other countries to adopt similar fiscal measures as inflation continues to have a significant impact on the tax measures countries deploy.

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