Charging tourist tax in guesthouses and hotels

In many holiday destinations, guests have to pay a levy to the municipality for every night: the tourist tax (in German-speaking countries "Kurtaxe"). As a rule, the host has to collect it. That sounds simple, but in practice it raises questions: who is exempt? Is it subject to VAT? And how do you keep track for the report to the municipality?

Note: every municipality or canton sets its own rules. This article explains the principles; the binding source is always your local regulation.

What is the tourist tax?

The tourist tax is a levy municipalities use to fund tourism offerings – hiking trails, guest cards or events. Depending on country and place it has different names:

• Germany: Kurtaxe, Kurbeitrag or Gästebeitrag. Some cities add an overnight or bed tax.
• Austria: Ortstaxe or Nächtigungsabgabe – regulated by each federal state.
• Switzerland: Kurtaxe, taxe de séjour or tassa di soggiorno, in some cantons supplemented by an accommodation or tourism levy.

It is usually a fixed amount per person and night. Some places vary it by season, zone or type of accommodation.

Who pays, who collects?

The tourist tax is generally owed by the guest. The host, however, has to collect it, report the overnight stays and pass the amount on to the municipality – monthly, quarterly or once per season, depending on the place. If the host forgets to collect it, they are often liable for the amount themselves.

Who is exempt?

Each municipality decides on exemptions itself. Common ones are:

• Children up to a certain age (often 6, 12 or 16)
• People with severe disabilities and their companion
• Guests travelling for work – mainly for city overnight taxes, often only with proof from the employer

Record exemptions and proof per booking. In an inspection you have to be able to show why a guest didn't pay.

Tourist tax and VAT

The tourist tax isn't payment for a service of your property; it's a levy you collect on behalf of the municipality. It therefore belongs on the invoice without VAT, as its own line item, separate from accommodation and breakfast. If you mix it into the room rate, you accidentally include it in the taxable service.

How to handle the tourist tax properly

1. Store the rate: note the amount per person and night from your municipality's regulation – all rates if it varies by season.
2. Calculate with every booking: adults × nights × rate, children and exempt guests separately.
3. Separate line on the invoice: its own position without VAT.
4. Hand out the guest card if your municipality has one – it is often tied to the tourist tax.
5. Report on time: add up the overnight stays per period and submit them to the municipality.

Frequently asked questions about the tourist tax

Do I also have to collect it for Airbnb or Booking.com bookings?

Yes, the obligation lies with the host regardless of the booking channel. In some places Airbnb collects and remits tourist taxes itself. Check whether that applies to your location so nothing is charged twice.

Can I include the tourist tax in the room rate?

Many municipalities require it to be shown separately. For tax purposes, too, showing it separately without VAT is the safe option.

What if a guest refuses to pay?

Point out the obligation, ideally already in the booking confirmation. If they still don't pay, in many municipalities you have to pay the amount yourself. When in doubt, ask the municipality how to proceed.

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