As of January 1, 2026, an important change will take effect for everyone who offers overnight stays. The reduced VAT rate of 9% on accommodation will be abolished and replaced by the standard VAT rate of 21%. This change is part of the 2026 Tax Plan and has direct consequences for providers of holiday rentals, hotels, B&Bs, and other forms of short-term accommodation.
If you are active in rental services or offer overnight stays, it is wise to understand now what this VAT change means for your prices, invoices, and VAT returns.
What will change as of January 1, 2026?
Until December 31, 2025, accommodation still falls under the reduced VAT rate of 9%. From January 1, 2026, accommodation will be subject to 21% VAT.
A key principle in VAT legislation is that the moment the service is performed determines the applicable VAT rate. In the case of accommodation, this is the moment when the overnight stay actually takes place. This means that stays in 2026 will generally fall under the 21% rate, even if the booking or payment was made earlier.
Which accommodations are subject to the 21% rate?
The VAT increase applies to nearly all forms of short-term accommodation, including:
-
hotels and guesthouses
-
bed and breakfasts
-
holiday homes and holiday apartments
-
hostels and group accommodations
-
rentals via platforms such as Airbnb and Booking.com
It does not matter which platform the booking is made through. Rentals to non-tourists, such as expats, students, or employees staying temporarily, are also subject to the same rules.
At campsites and holiday parks, the increased rate applies to, among other things:
-
chalets
-
mobile homes
-
safari tents
-
hikers’ cabins
-
circus wagons
Which exception remains?
One clear exception remains: camping pitches without accommodation.
When you rent out a piece of land where guests place their own tent, caravan, or camper, the 9% VAT rate continues to apply. This also includes basic facilities such as sanitary services, water, and electricity.
If your business offers multiple types of rentals, such as camping pitches and chalets, you may have to deal with multiple VAT rates within one administration, which requires extra care.
Who pays for the VAT increase?
As a landlord or accommodation provider, you decide whether to:
-
pass the VAT increase fully on to the guest,
-
pass it on partially, or
-
absorb it yourself (temporarily).
If you pass the increase on in full, the price for the guest will increase by approximately 11% in practice.
For example:
€100 excluding VAT → previously €109, now €121
It is advisable to communicate price changes in good time to avoid surprises for guests.
Bookings, payments, and the year transition
Because the VAT rate depends on when the overnight stay takes place, the following principles apply:
-
Overnight stays in 2025
→ 9% VAT -
Overnight stays in 2026
→ 21% VAT
This also applies if:
-
the booking was made in 2025,
-
a deposit was paid in 2025, or
-
the full amount was paid in 2025.
If you previously charged 9% VAT for a stay that ultimately takes place in 2026, this must be corrected in your invoicing and VAT records. In many cases, this is done by:
-
issuing a credit invoice, and
-
issuing a new invoice with the correct VAT rate.
The exact correction method may differ per situation, but the goal is always to declare the correct VAT.
All-in prices and packages
Do you offer packages, such as accommodation including breakfast? Then the total price must be split based on market value:
-
the accommodation component → 21% VAT
-
the breakfast → 9% VAT
It is not permitted to apply a single VAT rate to the entire package if its components are taxed differently.
Airbnb and private rentals
Not every private landlord automatically qualifies as a VAT entrepreneur. Whether you are subject to VAT depends on your activities and circumstances, such as:
-
the regularity of rentals,
-
the number of accommodations,
-
whether additional services are offered, and
-
whether there is a profit motive.
Occasional rental of your own home is often not subject to VAT, while structural rental activity or multiple properties is more likely to result in VAT entrepreneurship. This varies by situation.
Other sectors remain unaffected
The VAT increase to 21% was previously also proposed for sectors such as culture, sports, and media. These plans were later withdrawn. The existing VAT rates for these sectors will remain in place for now.
Conclusion
The VAT change for accommodation as of January 1, 2026, has clear consequences for rental providers. The correct VAT rate depends on when the overnight stay takes place, not just on when the booking or payment occurs. The risk of errors is particularly high with advance payments, rescheduled bookings, and bundled packages.
Want to be sure that your invoices, VAT returns, and corrections are handled correctly? Balancify supports entrepreneurs daily with these types of VAT issues. Schedule an introductory meeting and keep your administration balanced with peace of mind.
As of January 1, 2026, an important change will take effect for everyone who offers overnight stays. The reduced VAT rate of 9% on accommodation will be abolished and replaced by the standard VAT rate of 21%. This change is part of the 2026 Tax Plan and has direct consequences for providers of holiday rentals, hotels, B&Bs, and other forms of short-term accommodation.
If you are active in rental services or offer overnight stays, it is wise to understand now what this VAT change means for your prices, invoices, and VAT returns.
What will change as of January 1, 2026?
Until December 31, 2025, accommodation still falls under the reduced VAT rate of 9%. From January 1, 2026, accommodation will be subject to 21% VAT.
A key principle in VAT legislation is that the moment the service is performed determines the applicable VAT rate. In the case of accommodation, this is the moment when the overnight stay actually takes place. This means that stays in 2026 will generally fall under the 21% rate, even if the booking or payment was made earlier.
Which accommodations are subject to the 21% rate?
The VAT increase applies to nearly all forms of short-term accommodation, including:
-
hotels and guesthouses
-
bed and breakfasts
-
holiday homes and holiday apartments
-
hostels and group accommodations
-
rentals via platforms such as Airbnb and Booking.com
It does not matter which platform the booking is made through. Rentals to non-tourists, such as expats, students, or employees staying temporarily, are also subject to the same rules.
At campsites and holiday parks, the increased rate applies to, among other things:
-
chalets
-
mobile homes
-
safari tents
-
hikers’ cabins
-
circus wagons
Which exception remains?
One clear exception remains: camping pitches without accommodation.
When you rent out a piece of land where guests place their own tent, caravan, or camper, the 9% VAT rate continues to apply. This also includes basic facilities such as sanitary services, water, and electricity.
If your business offers multiple types of rentals, such as camping pitches and chalets, you may have to deal with multiple VAT rates within one administration, which requires extra care.
Who pays for the VAT increase?
As a landlord or accommodation provider, you decide whether to:
-
pass the VAT increase fully on to the guest,
-
pass it on partially, or
-
absorb it yourself (temporarily).
If you pass the increase on in full, the price for the guest will increase by approximately 11% in practice.
For example:
€100 excluding VAT → previously €109, now €121
It is advisable to communicate price changes in good time to avoid surprises for guests.
Bookings, payments, and the year transition
Because the VAT rate depends on when the overnight stay takes place, the following principles apply:
-
Overnight stays in 2025
→ 9% VAT -
Overnight stays in 2026
→ 21% VAT
This also applies if:
-
the booking was made in 2025,
-
a deposit was paid in 2025, or
-
the full amount was paid in 2025.
If you previously charged 9% VAT for a stay that ultimately takes place in 2026, this must be corrected in your invoicing and VAT records. In many cases, this is done by:
-
issuing a credit invoice, and
-
issuing a new invoice with the correct VAT rate.
The exact correction method may differ per situation, but the goal is always to declare the correct VAT.
All-in prices and packages
Do you offer packages, such as accommodation including breakfast? Then the total price must be split based on market value:
-
the accommodation component → 21% VAT
-
the breakfast → 9% VAT
It is not permitted to apply a single VAT rate to the entire package if its components are taxed differently.
Airbnb and private rentals
Not every private landlord automatically qualifies as a VAT entrepreneur. Whether you are subject to VAT depends on your activities and circumstances, such as:
-
the regularity of rentals,
-
the number of accommodations,
-
whether additional services are offered, and
-
whether there is a profit motive.
Occasional rental of your own home is often not subject to VAT, while structural rental activity or multiple properties is more likely to result in VAT entrepreneurship. This varies by situation.
Other sectors remain unaffected
The VAT increase to 21% was previously also proposed for sectors such as culture, sports, and media. These plans were later withdrawn. The existing VAT rates for these sectors will remain in place for now.
Conclusion
The VAT change for accommodation as of January 1, 2026, has clear consequences for rental providers. The correct VAT rate depends on when the overnight stay takes place, not just on when the booking or payment occurs. The risk of errors is particularly high with advance payments, rescheduled bookings, and bundled packages.
Want to be sure that your invoices, VAT returns, and corrections are handled correctly? Balancify supports entrepreneurs daily with these types of VAT issues. Schedule an introductory meeting and keep your administration balanced with peace of mind.
