What matters in hospitality

VAT in hospitality and accommodation: the Czech Republic compared with its neighbours

Jan Boroš · 26 October 2026

VAT rates on restaurant food and accommodation in the Czech Republic and neighbouring countries

VAT is part of the price of every meal, drink and hotel night. Rates differ across the EU because the EU VAT Directive allows member states to apply a reduced rate to restaurants and accommodation. We looked at how the Czech Republic and its neighbours use this option.

The Czech Republic and its neighbours

Country	Restaurant food	Drinks in restaurants	Accommodation	Standard rate
Czech Republic	12%	21% (soft drinks from 2027: 12%)	12%	21%
Austria	10%	20% (some soft drinks 10%)	10%	20%
Poland	8%	soft drinks 8% or 23%, alcohol 23%	8%	23%
Germany	7%	19%	7%	19%
Slovakia	5%	soft drinks 19%, alcohol 23%	5%	23%

Restaurant food: the Czech rate (12%) is the highest of the five countries. The neighbours apply 5 to 10%.
Accommodation: the same – 12% in the Czech Republic, 5 to 10% in neighbouring countries.
Drinks: all five countries tax alcohol at the standard rate. From 2027, the Czech Republic will tax soft drinks in restaurants at 12%. Germany and Slovakia apply 19%, Austria 20% (some 10%) and Poland 8% or 23% depending on the drink – coffee, tea, carbonated drinks and mineral water are taxed at 23%.
Standard rate: the Czech Republic (21%) is in the middle – below Slovakia and Poland (23%), above Austria (20%) and Germany (19%).

Example: a CZK 300 lunch

In a lunch costing CZK 300 including VAT, the tax at the Czech rate is CZK 32. At the Austrian rate it would be CZK 27, at the Polish rate CZK 22, at the German rate CZK 20 and at the Slovak rate CZK 14.

Recent changes

Germany permanently reduced VAT on restaurant food to 7% from 1 January 2026. Drinks remain at 19%.
Slovakia has had a standard rate of 23% since 2025 and a reduced rate of 5% that applies, among other things, to restaurant food and accommodation.
The Czech Republic will move soft drinks served in restaurants from the standard rate of 21% to the reduced rate of 12% from 1 January 2027. The rates for food and accommodation remain unchanged.

Comparison with the whole EU

According to the European Commission's database (situation on 1 July 2026), 14 EU countries have a lower VAT rate on restaurant food than the Czech Republic, two have the same rate (Belgium and Sweden) and ten have a higher rate. Six of these ten tax restaurants at the standard rate (Malta, Bulgaria, Lithuania, Latvia, Estonia and Denmark); their economies, price levels and tax systems differ considerably. Of the countries that apply a reduced rate to restaurants, only four have a higher rate than the Czech Republic: Portugal, Greece and Croatia (13%) and Finland (13.5%).

For accommodation, 15 countries have a lower rate than the Czech Republic, four the same and seven a higher one.

What it means for businesses and guests

VAT is part of the price paid by the guest; the business collects it and pays it to the state. A difference in the rate is therefore reflected either in prices or in the business's margin. For operators in border and tourist regions, the comparison with neighbouring countries also matters because they compete for the same guests as businesses across the border.

Summary

For restaurant food and accommodation, the Czech Republic has a higher VAT rate than all its neighbours. For most soft drinks, its rate will be lower than in neighbouring countries from 2027. Within the EU as a whole, the Czech Republic is in the upper half of the countries that apply a reduced rate to restaurant food. We will keep track of the figures and update the comparison when rates change.

Sources

This article reflects the situation as of 26 October 2026. Rates may change and detailed national rules apply to individual items. Data in the European Commission's database are provided by member states.