Germany: Fiscal Court decides over VAT on hotel vouchers
Submitted by Michael Wukoschitz on 10 May, 2012 - 14:58
In a decsion of Sep. 8, 2011, the German Federal Fiscal Court (BFH) decided that
- the sale of hotel vouchers qualifies as a procurement of hotel accommodation rendered in exchange for an advance payment of the customer,
- which service has to be taxed in the month in which the sale of the voucher (and not the redemption) took place.
- However, if subsequently the customer redeemed the voucher for accommodation in a foreign country, the procurement service is not taxable in Germany and the respective VAT adjustments have to be made accordingly.
BFH judgement V R 42/10 of Sep. 8, 2011, availbale in German here>>.