In a bid to reinvigorate Austria’s tourism sector, changes to Austrian VAT law provide that as of 1st November 2018, the VAT rate applicable to certain supplies of accommodation services will be lowered to the reduced 10% VAT rate.
The 10% rate of VAT will apply to:
• Furnished accommodation and connected services such as heating, and the provision of a price-inclusive breakfast; and
• The use of campsites and connected services.
Currently, these supplies of accommodation services are generally subject to Austrian VAT at the 13% reduced rate.