The recently enacted legislation provides that the scope of the 10% reduced rate will be extended to cover all types of accommodation services, including the following:
- Hotel accommodation and similar services;
- Tourist short-stay accommodation and similar services;
- The use of campsites; and
- Other accommodation services including boarding school and student accommodation, and the provision of hostel accommodation for workers.
Currently, such supplies are subject to Slovakian VAT at the 20% standard rate.
The purpose of this VAT cut is mainly to revitalise demand in the tourism sector. It emulates recent actions taken by Austria and Romania. Most Member States already apply reduced rates of VAT within the tourism and hospitality sectors.