VAT increase to 12% for furnished accommodations from March 1, 2026

What will change as of March 1, 2026?

Within the framework of the federal budget agreement, the VAT rate for the provision of furnished accommodation (with or without breakfast) and the supply of camping pitches will be harmonized at 12%.

Although the measure was confirmed at a late stage, the entry into force of the VAT increase remains scheduled for March 1, 2026.

The new rate applies regardless of the type of operation, including:

• hotels and motels,

• guest rooms,

• B&Bs,

• other similar forms of accommodation.

What remains exempt?

Overnight stays that are currently exempt from VAT under existing legislation will remain exempt. This specifically concerns:

• residential care centers and retirement homes,

• boarding schools,

• youth protection institutions,

• shelters,

• psychiatric care institutions,

• hospitals.

These institutions therefore fall outside the scope of the VAT rate increase.

Transitional measure

Given the late implementation of the regulation, the legislator has introduced a transitional measure. The 6% VAT rate will continue to apply to reservations made no later than February 28, 2026, provided that the VAT on those reservations becomes chargeable no later than June 30, 2026.

This transitional measure does not apply:

• to reservations made on or after March 1, 2026;

• to reservations made no later than February 28, 2026, where the VAT becomes chargeable (generally upon payment or the issuance of an invoice) on or after July 1, 2026.

In the case of voluntary invoicing to private individuals, the date of issuance of the invoice may determine the chargeability of VAT, provided this approach is applied consistently to all voluntary invoices.

The operator must be able to demonstrate the date of reservation (e.g., through a confirmation email or payment of a deposit).

What is the impact?

This change affects not only your pricing and margins but also entails a significant administrative burden. Your ERP systems, booking platforms, websites, invoicing processes, and pricing communication may need to be thoroughly reviewed and adjusted.

In addition, questions arise regarding the application of the new rate structure to cancellation or no-show fees, as well as to additional services such as late check-out, early check-in, extra cleaning, luggage storage, equipment rental, vouchers, and similar services.

It is clear that the upcoming VAT changes will have a substantial impact on the sector. Vandelanotte can support you in conducting a detailed impact analysis to ensure that you manage the announced changes correctly and efficiently.

Do you have any questions or remarks? Do not hesitate to contact one of our experts via the form below.