§ Mr. Simon CoombsTo ask the Chancellor of the Exchequer what are the rates of VAT applicable to(a) budget and (b) luxury hotel accommodation in each of the member states of the European Union.
§ Mr. Heathcoat-AmoryThe VAT rates applied in EU member states to budget and luxury hotel accommodation are shown in the table:
VAT rates on hotel accommodation in the EU Country Rate: budget accommodation Per cent. Rate: luxury accommodation Per cent. Austria 10 10 Belgium 6 6 Denmark 25 25 Finland 22 22 France1 5.5 5.5 Germany 15 15 Greece 8 8 Ireland 12.5 12.5 Italy 9 19 Luxembourg 15 15 Netherlands 6 6 Portugal2 5(4) 5(4) Spain 6 6 Sweden 12 12 UK3 17.5 (5) 17.5 (5) Notes:
1 The following rates apply generally in Corsica: 0.9 per cent., 2.1 per cent., 8 per cent. and 13 per cent.
2 The rates in brackets apply in Madeira and the Azores Archipelagoes.
3 The five per cent. shown in the UK list applies to hotel accommodation in Isle of Man as from 1 October 1994.
Sources:
VAT in Europe (International Bureau of Fiscal Documentation), EU member states' embassies in London.