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Tourism will get a boost

Recreational vouchers and lower VAT on accommodation are closer to reality

(Source: TASR)

Businesses active in tourism in Slovakia have been calling for higher support from the side of the government for years. Now the reduction of the value-added tax on accommodation and the introduction of recreational vouchers should become part of the planned social package.

Support of tourism is an agenda of the minor ruling party Slovak National Party (SNS). Its chair Andrej Danko agreed on May 30 with Finance Minister Peter Kažimír (Smer) on the reduction of VAT from 20 to 10 percent on accommodation and €500 recreational vouchers. The legislative process should start in September and the new law should be effective as of 2019.

“We will put some millions of euros into tourism this way,” said Danko as cited by the Pravda daily.

Read also:Recreational vouchers may return

There are no analyses yet on how much these measures will cost the state coffers.

Recreational vouchers

The vouchers should work on a similar principle as meal vouchers, but it will be voluntary. One voucher will be worth €500, from which the employer will cover 55 percent and the employee the remaining sum. Only employees working for a particular company for at least two years will be entitled to this benefit. It will be possible to use these vouchers only in Slovakia.

The Transport Ministry, which is preparing the respective legislation, believes that the vouchers may help less developed regions in which tourism is the only working business sector.

Marek Harbuľák, chairman of the Slovak Association of Hotels and Restaurants (ZHR), perceives the proposed reduction of VAT and the introduction of recreational vouchers as the tourism sector’s requests after almost 20 years.

Within the European Union, only Slovakia, Denmark and Great Britain do not have reduced VAT on accommodation and restaurants, recalls Pravda.

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