Referral to the ECJ: on the allocation of hotel services and tax rate

June 16, 2024

On 10 January 2024, the BFH referred the following question to the ECJ (XI R 11/23) for a decision:

Is the use of a car park by hotel guests an independent service (pro rata 19% VAT rate) if the guests of the hotel were able to use the car park without separate payment or is it a dependent ancillary service to the overnight stay (total package 7% VAT rate).

Note: The BFH considered breakfast, which was always included but could be cancelled on request, which reduced the price for the “total package overnight stay” by EUR 4.50, to be an independent service (consequently 19% VAT).