Growth plan. Thanks to a continued fight for a 100 per cent VAT exemption on hotel accommodations by the Danish hotel and meetings industry, a full VAT exemption has now been successfully included in the Government’s coming growth plan. Hence, as of 1st January 2015, VAT is expected to be fully deductible from business travellers’ hotel stays in Denmark, making the cost of hotel accommodation in Denmark significantly less.
The current VAT deduction for hotel stays in Denmark is 75 per cent, but the recent Government decision to adopt a 100 per cent VAT exemption in its new growth plan is expected to have a positive impact on the Danish meetings industry, as past experiences with VAT exemptions have shown a rise in overnight stays and employment.
Members of the Danish meetings industry are applauding the new proposal in the Government’s growth plan – a plan that will give the industry another major boost and make Denmark even more competitive within the global meetings industry. “A 100 per cent VAT deduction for hotel accommodation provides the Danish meetings industry with a more favourable position in negotiations about winning contracts for major events and strengthens the destination's competitiveness. Its positive effects will not only be seen in the business tourism industry, but also in other related industries,” says Steen Møller, International Project Manager of VisitDenmark's Business Events Team.