WRITTEN QUESTION E-1251/02 by Werner Langen (PPE-DE) to the Commission. VAT rates in the hotel trade.
Date: 2002-05-06
Institutions: European Parliament, Provisional data
Subjects: VAT, euro area, hotel industry, tax harmonisation, tax system

6.3.2003

EN

Official Journal of the European Union

C 52 E/53

In accordance with the aforementioned agreements, the Commission automatically receives either a full
copy or a summary of such studies and reports. Once they are in the possession of the Commission, these
copies or summaries are covered by Regulation (EC) No 1049/2001 of the European Parliament and of the
Council of 30 May 2001 regarding public access to European Parliament, Council and Commission
documents (1).

At a more general level, the Commission shares the Honourable Member’s concern for transparency and
tries to ensure that the results of studies funded from the Community budget are distributed as widely as
possible. In view of the diversity of the areas affected, and in order to avoid imposing additional costs and
administrative constraints, to date the Commission has preferred not to make it compulsory to publish and
distribute the studies concerned. In addition, some studies might be covered by the exemptions provided
for by Regulation (EC) No 1049/2001 while others might be of only local interest or concern a specific
sector.

In some cases, and notably in the area of research, priority is given to exploiting and disseminating results.
Furthermore, several Directorates-General include the results of studies and reports on their websites or in
their publications. The Office for Official Publications of the European Communities is currently working
on the creation of a central Internet portal which will be geared specifically to studies and reports of
interest to a highly specialised public. The Commission supports initiatives aimed at ensuring transparency
and facilitating access to studies and reports.

(1) OJ L 145, 31.5.2001.

(2003/C 52 E/062)

WRITTEN QUESTION E-1251/02

by Werner Langen (PPE-DE) to the Commission

(6 May 2002)

Subject: VAT rates in the hotel trade

In all the Euro zone countries except Germany, reduced rates of VAT apply to the hotel trade. In Germany,
however, the full 16 % is levied.

Can the Commission answer the following:

1. How are hotel turnovers actually taxed in the EU Member States, in terms both of amounts and of

preconditions?

2. Might it be possible to introduce a uniform rate of VAT for hotel turnovers in the EU?

3. What are the arguments for and against approximating VAT rates for hotel turnovers in the EU?

Answer given by Mr Bolkestein on behalf of the Commission

(27 June 2002)

Under current Community law on VAT (Article 12(3) of Sixth Council Directive 77/388/EEC of
17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes (cid:1)
Common system of value added tax: uniform basis of assessment (1)), the standard minimum rate of 15 % is
applicable to the supply of goods and to the supply of services.

However, Member States also have the option of applying either one or two reduced rates. Reduced rates
are fixed as a percentage of the taxable amount, which may not be less than 5 %, and apply only to
supplies of the categories of goods and services specified in Annex H to the Sixth VAT Directive.

C 52 E/54

Official Journal of the European Union

EN

6.3.2003

includes accommodation provided by hotels and similar establishments including holiday
The list
accommodation and the letting of camping sites and caravan parks. The 15 Member States may therefore
choose whether or not to apply a reduced rate to such services. The rates currently applied by the Member
States are set out in a table which is being sent direct to the Honourable Member and to the General
Secretariat of the Parliament.

The drafting of these provisions (cid:1) the option of applying a reduced rate and the list of goods and services
to which the reduced rate may apply (cid:1) is the result of negotiations in the Council.

In 2000, the Commission adopted a communication on a new VAT strategy (2) focusing mainly on
simplifying and modernising the existing rules, and applying the current provisions more uniformly.
Against this background, the Commission intends to review the structure of reduced VAT rates over the
course of next year with a view to proposing an enhanced approximation of these rates.

However, it should be noted that as the adoption of new tax provisions is still subject to unanimity in the
Council, Commission proposals generally run the risk of being amended.

In order to ensure ‘neutrality’ in the single market a certain degree of VAT harmonisation is necessary.
That some Member States apply reduced rates and others do not leads to distortions of competition in
cross-border areas. For 2003 the Commission therefore foresees an overall review of the current reduced
VAT rate structure. Ideally, VAT harmonisation should not be a pretext to raise VAT to the highest levels
applied in Member States but should aim at a business-friendly low VAT level in all Member States.

The VAT rate does play a role in a country’s price level. However, there is no evidence that differences in
VAT application determine the choice of destination of holidaymakers. VAT and income differences seem
to be able to explain some of the price differences found in the Union, but they are far from being the
only cause. Price differences across the Union are large whether measured with or without VAT.

The application of the reduced VAT is also frequently justified by its positive effect on the labour-intensive
thus is better enabled to respond to ‘basic needs’ and to create employment.
tourism sector that
The Commission, however, thinks that VAT is a broad consumption tax rather than a suitable instrument
for social engineering or employment policy.

(1) OJ L 145, 13.6.1977. Directive last amended by Council Directive 2001/115/EC of 20 December 2001, OJ L 15,

17.1.2002.

(2) COM(2000) 348 final.

(2003/C 52 E/063)

WRITTEN QUESTION P-1280/02

by Mario Mauro (PPE-DE) to the Commission

(29 April 2002)

Subject: Siege of the Church of the Nativity in Bethlehem

On 2 April about 230 armed Palestinians, including 30 militiamen, entered the Church of the Nativity in
Bethlehem to take shelter from the advancing Israeli troops. Scores of Palestinian civilians, as well as
Catholic, Greek Orthodox, and Armenian priests and nuns, are currently inside the complex.

The people trapped in the Church of
the sanitary
conditions now prevailing in the buildings. The bodies of two Palestinians shot dead by Israeli army
snipers have been left in the complex for more than a week.

the Nativity have repeatedly complained about

How does the Union, and especially the High Representative responsible for foreign policy, propose to deal
with the extremely serious matter of the military siege of the Church of the Nativity?