How much is VAT on hotel stays?
Until 2025, hotel stays are subject to the reduced VAT rate of 9%. From 1 January 2026, this will change and you will pay the general VAT rate of 21%. This only applies to the accommodation part of the hotel bill. Other components, such as meals, fall under different rules. The time of stay determines which rate applies, not the time of booking or payment.
Reclaim VAT on hotel stay
Hotel yes, food and drink VAT no. You can reclaim the VAT on the accommodation part of a business hotel stay if preload. This only applies if you are liable for VAT and the overnight stay is business. You cannot deduct the VAT on food and drink, even if it is on the same hotel bill. It is therefore important that the invoice is itemised so that it is clear which part concerns accommodation.
Hotel accommodation costs deductible
Hotel expenses may be deductible from your profits, but not always in full. The tax authorities distinguish between ordinary business overnight stays and expenses that fall under entertainment. Thresholds and alternative deduction percentages also apply. Which rules apply depends on the purpose of the trip and the type of expenses.
Conferences, seminars and study tours
Costs for congresses, seminars and study trips are limited deductible. You may not deduct the first €5700. Everything above that is. Instead of this threshold, you may also opt for a fixed deduction of 80% of the costs. For corporate taxpayers, a deduction of 73.5% applies.
Travel and accommodation expenses
For travel and accommodation expenses, you can normally deduct a maximum of €1500. If participation was necessary for your work, this maximum does not apply and you may deduct all costs.
Food and drink
Costs for food and drink during a business overnight stay are limited deductible. These expenses fall under entertainment expenses. You apply the same threshold or fixed deduction percentage for them. You may not reclaim the VAT on these expenses, even if they appear on the hotel bill.
Breakfast, parking and tourist tax
Breakfast is considered food and falls under the limited deduction. Parking costs at the hotel are travel expenses and are deductible if the trip was business. Tourist tax is a business expense and does not include VAT. You may fully book this as an expense.
Processing in your accounts
Correct processing in your accounts prevents errors in your VAT return and income tax. Always break down hotel expenses into accommodation, meals and other costs. Book the accommodation part as accommodation expenses and deduct the VAT. Book food and drinks as entertainment expenses without VAT deduction. Book parking costs and tourist tax separately as business expenses. With an itemised invoice, you keep this clear and verifiable.
