VAT is charged on nearly everything. And when you stay at a hotel 17.5% is payable by the hotel to the tax coffers. It is a uniform tax payable wherever you are in our countries unlike the United States where taxes vary state by state. But In France, the VAT on visiting attractions is only 5.5% and from the beginning of 2010, Germany will only charge hotels 7% VAT instead of the normal 19%.

Now 40 British M.P’s have signed a motion calling on our government to cut the VAT that accommodation providers and attractions pay.

Starting today, the EU will consult with the travel industry over the next 8 weeks before coming up with new proposals on giving greater protection to travellers.