Postillion Hotels charges Dutch VAT on bookings by foreign organizations. For services provided by Postillion Hotels Nederland and its entities, the reverse charge mechanism for VAT is not an option. In all cases, the place of supply is the Netherlands and therefore Dutch VAT must be remitted.
Organizations and clients can often reclaim this VAT. This can be done through local tax authorities in the country of establishment. More information can be found at your local tax authority.
The relevant case law is as follows:
Regarding guest accommodation, the place of supply is the Netherlands based on Article 6b of the Dutch Turnover Tax Act 1968 (Article 47 of the VAT Directive), and therefore Dutch VAT must be charged.
Regarding restaurant and catering services, the place of supply is the Netherlands based on Article 6f of the Dutch Turnover Tax Act 1968 (Article 55 of the VAT Directive), and therefore Dutch VAT must be charged.
Regarding the provision of meeting facilities or halls, this is considered passive rental, whereby the place of supply is the Netherlands, and based on Article 6b of the Dutch Turnover Tax Act 1968 (Article 47 of the VAT Directive), Dutch VAT must therefore be charged.
Further information can be found in a letter addressed to Postillion Hotels, written by drs. B. Jonker, Tax Advisor. No rights can be derived from the above statements.