Germany: Fiscal Court decides over VAT on hotel vouchers

Michael Wukoschitz's picture

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>>.