VAT Increase on Lodging from 2026: What Hospitality Entrepreneurs Need to Know in 2025

Starting January 1, 2026, the VAT rate on lodging will increase from 9% to 21%. This change will significantly impact hospitality businesses such as hotels, bed & breakfasts, holiday parks, and short-stay accommodations.

What is changing?

• The reduced VAT rate of 9% will no longer apply to lodging services.

• The standard rate of 21% will apply to overnight stays in hotels, guesthouses, and vacation rentals.

• Campsites will continue to benefit from the 9% reduced VAT rate.

Note: Transitional rules already apply in 2025

Advance payments or vouchers issued in 2025 for lodging services to be rendered in 2026 or later are already subject to the new 21% VAT rate. This means that hospitality entrepreneurs must act now, even though the rate change officially takes effect in 2026.

What should you do as a hospitality entrepreneur?

✅ Check your booking and POS systems Ensure they are updated to handle the new VAT rate correctly.

✅ Review your pricing strategy Consider whether to adjust your prices or profit margins in light of the higher VAT.

✅ Inform your guests in advance Clearly communicate the VAT change in your offers, booking confirmations, and on your website, especially for stays in 2026.

✅ Be aware of mixed services If you offer meals, wellness services, or camping accommodations, determine which VAT rate applies to each component.

✅ Are you exempt under the Small Business Scheme (KOR)? Businesses with annual revenue below €20,000 may still qualify for KOR, which exempts them from charging and filing VAT.

If you have any questions about this change or want to assess the fiscal impact for your business, feel free to contact us or your account manager.

Timely advice helps you avoid unexpected tax consequences.