11. July 2019 · Comments Off on Tax Policy: Cologne Bed Tax · Categories: News · Tags: ,

The new stumbling block hardly the waves caused by the reduction of the value added tax on hotel stays, have calmed down a little, keeps the industry even the next controversy in breathing for the hotel industry. The force since the 1st of October art & culture tax of the city of Cologne, which in General parlance might be better as “Bed tax” is well known, of course, is meant. The levy decided by the North Rhine-Westphalian land Parliament in September 2010 is paid nights in Cologne accommodation and amounted to five percent of the price including value added tax. To properly dissipate the tax sum, hotels must contact immediately on two points, namely the Finanzamt and the city administration. It is possible to request a refund of the amount in the city by filling out an application, which should exist in the respective hotels in Cologne the guest himself. With the approval of the tax in Cologne, door are laggards and Gate opened and so it is not surprising that high-traffic cities such as Bremen, Munich or Hamburg is already working on its version of the bed tax.

In return, of course also everywhere critical voices who expect a sensitive weakening of the hospitality industry through the serious area-wide introduction of the tax rise. So for example Thomas Rathcke, his character rejects parliamentary group leader of the Lubeck FDP, a similar model in his homeland and fears an overnight decline within the city. That encountered difficulties in practice may have a model for the subsequent revision, already showed the VAT reduction and lets hope even in the case of the bed tax on an optimizing. For accurate views and projections, also as regards a sustained weakening of the hotel industry, it’s probably much too early at present.

Comments closed.