ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Fiscal policy and VAT: tourism taxes in London, Paris, Amsterdam and Rome compared

Updated on July 2, 2015

Savoy Hotel in London


Among the taxes charged on tourism, the Vat is one of the most discussed.

There are differences in the Vat rate from country to country and from sector to sector. The European standard tax, that is between 19 and 25%, is often not applied to the sector of tourism, which according to european regulation, can have reduced rates (ex. 15%). Some primary goods must have reduced rates (ex. 4%). But let's see how do the governments drive their decisions.

According to European law, there is a finite list of sectors in which Vat rate can be lowered than the standard. This list is set out in Annex III to the principal EC VAT directive (2006/112/EC). The following items are the most important:

Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities.

Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites.

Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages.

Swot analysis about a policy which increments Vat taxation

Definitely a balance has to be found between government need for more income and competitiveness on the market.
Definitely a balance has to be found between government need for more income and competitiveness on the market. | Source

In the end, a favourable fiscal policy is very helpful from the point of view of the companies and anybody wants the Vat to have a reduction in his sector. For example in the United Kingdom, whether the standard rate is not particularly high (20%), tourism is comprehend on it ; and tourism and entertainment associations are arguing thathaving it reduced would provoke a prices cut, boosting sales and employment in this sector, which in turn would encourage growth in the wider economy.

France and the Netherlads have a lower Vat rate in tourism sector; in France this concerns all the tourism and entertainment sector, in the Netherlands it regards onlycinemas, active and passive sports, circuses, fairs, amusement parks, zoos, museums, swimming pools, restaurants, public transport, taxis and private bustransport.

Anyway reasons for keeping the highest Vat in this sector are quite clear. Tourism depends on infrastructures and infrastructures can be done only by the public, funded through taxes, of which Vat is an important part. Would it be worthy to lower taxes and reduce Vat income risking infrastructures to be worst? And why should this be done in a sector traditionally connected with luxury, that is not primary need? However pressures from tourism linked organisations are strong.

Several european big cities have implemented another tax, due to tourist tendency to get the city overcrowd, that in the countryside is absent. The "bed tax" that is a fixed amount charged on the hotel fee, generally it's not over 2 or 3 euros. Rome and Paris already have it. Britain is discussing about its implementation. City of Camdenwould gain 5 millions pounds a year, The Guardian estimate.

Map showing level of the Vats in Europe



    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)