Sharks in the German Hotel Industry
Did you know that value added taxes for hotel room rates in Germany have been lowered to 7% from 19%? This was apparently done in order to increase the turnover from hotel guests and should be great news, as the hotel rooms become more affordable to the paying clientele. Last November, I stayed at a hotel in Hamburg and payed 89 Euros per night, inclusive of 19% taxes. Last weekend, I stayed at the same hotel and was charged - 89 Euros, inclusive of 7% taxes! So the tax difference was obviously not passed on to me, it rather goes straight into the pocket of the hotel owner. I have the itching feeling that this is not an exception, but rather the rule. After all, who really is aware that the VAT rates have been lowered? I for once had no idea, and was of course happy to book the room at the same total rate I was charged two months ago. In addition, if you do not know how the total rate for the room was last year, you simply have no way to know if you are being ripped off. It is a shame that pure greed ruins an honest effort by the German government. Next time you check into a German hotel, ask what the room rate was last year - if it was the same, you should let them know that you are aware of the new, lower value added tax rate. Maybe this will make a difference! Thanks goes to my good friend Olli, who alerted me of the new VAT rate, and me check my two invoices.
