Question 1

What VAT rate applies to hotel stays in 2026?

Accepted Answer

It varies widely and is almost never the standard VAT rate. Most EU/EEA countries and the UK apply a reduced accommodation rate — from Luxembourg's 3% up to France/Italy/Spain/Austria at 10% — while a handful (Netherlands 21%, Denmark 25%, UK 20%) apply the standard rate with no relief. The Netherlands jumped from 9% to 21% on 1 January 2026 and Belgium moves from 6% to 12% on 1 March 2026, so check the rate this tool has prefilled for your country and confirm against your local tax authority before invoicing.

Question 2

Do I charge VAT on the city or tourist tax?

Accepted Answer

Usually not. France, Italy, Portugal, Germany, Austria, Switzerland and Japan all treat the city/tourist tax as a pass-through charge outside the VAT or consumption-tax base — invoice it on its own line with the taxable flag off. Spain's regional tourist taxes and Edinburgh's new Visitor Levy (from 24 July 2026) are exceptions where the tax joins the VAT base — mark those lines taxable instead. Check the country-specific note this tool adds to your invoice.

Question 3

Is breakfast taxed at the same rate as the room?

Accepted Answer

Often not — but Germany is now an exception. Since 1 January 2026, German restaurant and catering VAT, including hotel breakfast, is permanently fixed at the same reduced 7% used for the room (only drinks stay at 19%). Elsewhere, splits still apply: Poland taxes nocleg at 8% but conference/spa packages at 23%; Portugal and Spain also split accommodation from certain extras. Croatia, Latvia and Estonia instead include breakfast within the room's reduced rate when it's part of a booked package.

Question 4

Does a B&B or guesthouse legally have to issue an invoice?

Accepted Answer

It depends on the market. In France, an invoice is mandatory for stays of €25 or more, or whenever the guest asks. In Italy, non-VAT-registered B&Bs issue a ricevuta rather than a fattura, with a €2 stamp duty (marca da bollo) due above €77.47, usually paid by the guest. In the UK, a VAT-registered hotel must provide a VAT invoice on request. In Germany, small operators under the Kleinunternehmer scheme charge no VAT at all.

Question 5

How do I invoice a company for an employee's hotel stay?

Accepted Answer

Use the guest/company field to bill the employer directly (a "city ledger" arrangement) and include the company's VAT/tax number where relevant. Note that accommodation is taxed where the hotel is located, not where the guest's business is based — a foreign business traveller's employer cannot reverse-charge the VAT and must instead reclaim it through the destination country's refund scheme (e.g. the EU's 8th/13th Directive routes).

Question 6

What's the difference between a hotel folio, invoice and receipt?

Accepted Answer

The folio is the running account of every charge and payment posted to a guest's room from check-in through check-out. The invoice is the final, settled snapshot of that folio once the stay ends — what the guest actually owes or has paid. A receipt simply confirms that payment has been made. This tool generates the final invoice.

Question 7

How do I show a deposit or OTA prepayment on the final invoice?

Accepted Answer

Add it as a negative line item (this tool's default template includes a "Less: deposit / prepayment received" line) so the total due reflects only the remaining balance. If a guest booked and prepaid through an OTA such as Booking.com or Expedia, note the OTA booking reference in the booking reference field so the guest can reconcile it against their own confirmation.

Question 8

What is occupancy tax, and how much is it in my city?

Accepted Answer

In the US, "occupancy tax" is a stacked combination of state, county and city lodging taxes with no federal VAT — combined rates can be substantial (for example, Houston's total is around 17%). Because rates are set locally rather than nationally, this tool leaves the US rate at 0% by default so you can enter your city's actual combined rate; stays of 30 days or more are commonly exempt, but confirm locally.

Question 9

Is the tourist/tourism tax charged per person or per room?

Accepted Answer

It depends on the country. Malaysia's Tourism Tax is a flat RM10 per room per night and applies to foreign guests only (Malaysian citizens and permanent residents are exempt). Japan's accommodation tax (宿泊税) is charged per person per night, tiered by room price. Greece's climate crisis resilience fee is charged per room per night, banded by star rating and season. France's taxe de séjour is per person per night, banded by accommodation classification.

Question 10

Do I need to put a registration number on the invoice?

Accepted Answer

In Japan, hotels issuing a qualified invoice (or simplified qualified invoice) must show their invoice registration number (登録番号), along with the tax rate and tax amount for each rate band, and keep the accommodation tax shown separately from the taxable amount. In Poland, Italy, Romania and Hungary, invoices may also need to flow through a mandatory e-invoicing system (KSeF, SDI, e-Factura, NAV Online Számla/NTAK) — this PDF is a helpful record but does not replace that statutory filing.

Question 11

How is a folio with mixed tax rates (room + extras) handled?

Accepted Answer

This tool supports one tax rate plus a per-line taxable flag, which covers a simple stay (room ± breakfast) cleanly. If your folio also includes standard-rated extras like parking, spa or minibar drinks that carry a different VAT rate from the room, the safest options are to issue those extras on a separate invoice, or to enter them as a gross, non-taxable line and state the applicable rate in the line description — this keeps the totals correct even though it is not a fully itemized VAT breakdown.

Beschreibung	Menge	Preis	Betrag
Room charge — Double room, room only	3	CHF0.00	CHF0.00
Breakfast	1	CHF0.00	CHF0.00
City / tourist tax	1	CHF0.00	CHF0.00
Parking	3	CHF0.00	CHF0.00
Minibar & room service	1	CHF0.00	CHF0.00
Laundry service	1	CHF0.00	CHF0.00
Late check-out fee	1	CHF0.00	CHF0.00
Less: deposit / prepayment received	1	CHF0.00	CHF0.00

Zwischensumme	CHF0.00
MWST (Sondersatz Beherbergung — temporary to end-2027) (3.8%)	CHF0.00

Total	CHF0.00

Hotel Invoice Generator

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Free hotel invoice generator & template

What should a hotel invoice (folio) include?

Why is the room taxed at a different rate from the minibar?

Is the city or tourist tax subject to VAT?

FAQs about hotel invoices