Short-term rental of living rooms and bedrooms

The Federal Ministry of Finance has accepted a ruling by the Federal Fiscal Court, according to which the reduced VAT rate for short-term rentals does not require the rented living and sleeping rooms to be located in a building that is permanently attached to the ground.

After the Federal Fiscal Court ruled that the reduced VAT rate for the short-term rental of living and sleeping quarters is not limited to the rental of land and buildings permanently attached to it, the Federal Ministry of Finance has now amended the VAT application decree accordingly. The dispute concerned the letting of residential containers to harvest workers, which is now also subject to the reduced tax rate. In addition to the short-term nature of the rental, the decisive factor for the application of the reduced tax rate is that the main focus of the supply is the provision of living or sleeping quarters for accommodation. The decisive factor here is the nature of the supply from the perspective of the average consumer. For example, the rental of non-stationary houseboats or mobile homes is not eligible, as the focus is not on accommodation, but on mobility, which determines the character of the overall supply.