Brussels hotels unhappy with 'brutal' VAT increase

Brussels hotels unhappy with 'brutal' VAT increase
Brussels city centre illustration. Credit: Belga

The Brussels hotel industry has criticised the government’s decision to double VAT on hotel stays, from 6% to 12%, warning it will harm competitiveness and local jobs.

Hotel operators argue they already face stiff competition from short-term rental platforms, which they say often pay significantly less tax or evade taxes altogether.

The Brussels Hotels Association called the VAT increase “brutal” and warned it will weaken Brussels’ and Belgium’s position in the global tourism market.

The association highlighted the paradox of formal establishments bearing stricter tax burdens while informal competitors enjoy lighter taxation. It pointed to short-term rental platforms as an example, noting allegedly unfair advantages.

This VAT increase is not the first financial burden for the sector. In July, the Brussels-Capital Region announced a rise in hotel taxes starting in 2026.

The Brussels Hotels Association views the lack of consultation as damaging to trust between hoteliers and authorities. It is calling on federal and regional governments for urgent dialogue.

Hoteliers are urging authorities to consider mitigating measures, equalise tax rules between hotels and rental platforms, and strengthen enforcement to ensure fair competition and safeguard the industry’s future.

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