The amended VAT Act has reduced the VAT rate for accommodation services. The VAT rate is reduced from 20% to the current 10% rate and is applicable to all accommodation services assigned code 55 per the Statistical classification of products by activity (CPA).
The following accommodation services are involved:
55.1: hotel and similar accommodation services,
55.2: tourist and other short-term accommodation services,
55.3: operation of camping grounds, recreation and holiday camps,
55.9: other accommodation services (such as those provided in student dormitories, services involving rooms or accommodation units in hostels for workers, and other).
This intention of lowering the VAT rate on accommodation services is to increase demand for accommodation services in Slovakia and to thereby support domestic tourism.
