Tax on the provision of tourist accommodation

From the 2024 tax year onwards, the municipality of Knokke-Heist will levy a tax on the provision of tourist accommodation

 
Why is this tax being introduced?
 

Following the coronavirus pandemic of 2020-2021, Europe is now faced with war in Ukraine. Energy prices have gone through the roof, followed by a wave of inflation. As a result, all operating and labour expenses have also increased. The total impact in terms of costs to our municipality amounts to at least €10 million per year. This huge rise in costs could not have been foreseen when drawing up plans for the long term.

We aim to continue to guarantee the quality of our services at all times. As a municipality, we invest millions into making sure that things are kept clean and tidy, ensuring public safety and keeping quality of life at a high level in order to attract the right people. In this respect, our ambitions remain completely unchanged.

We are making efforts to achieve an economical and efficient policy with regards to operating costs, with certain major investments having to be put on hold. At the same time, however, we have no choice but to increase revenues to maintain this same level of ambition. While most taxes and fees are being indexed, we are also introducing a tax on tourist accommodation. To date, we are the only coastal municipality to not have such a tax already in place. In addition, faced with increasing pressure from legal proceedings relating to taxation on second homes, questions are being asked as to the lack of any sort of similar taxation on tourism.

How much are we talking?

The level of taxation is determined according to category of tourist accommodation. When calculating taxation for the following categories, the maximum capacity (i.e. number of beds) for each tourist accommodation in question will be multiplied by the relevant rate.

The total capacities and the category as listed in the basic register of Tourism Flanders constitute a rebuttable presumption for the notified and/or recognised tourist accommodation. Informal accommodation will be taxed based on the information available to the municipality. Informal accommodation denotes accommodation that is not registered or recognised under the basic Flemish accommodation register. Such accommodations will be subject to the highest rate of €500 according to capacity per year.

The application of an annual flat rate is a well-thought out decision. The municipality wishes to limit the administrative burden for both owners/operators and the municipality.
Properties that are rented out as holiday homes are subject to accommodation tax regulations and NOT second home taxation. As a result, these taxes are not cumulative.
The minimum tax is set at €1,000 per tourist accommodation.

Example:

A recognised or registered five-bed holiday home with will now be subject to an annual payment of €1,250 (i.e. 5 x €250). The tax-free allowance on second homes stands at €790. Therefore, in this instance, the total added tax amounts to €460.

Should this additional cost be passed on to tourists?

The tax can be passed on to any tourists concerned. We recommend a rate of €1.50 per person per night, although this is purely indicative. However, we note that this is common practice within the wider sector. The municipality does not wish to impose or prohibit such practice.
Following a recent consultation within the hotel sector, we found that establishments are most likely to pass on a charge of €1.50 incl. VAT per person per night to the customer.

Who is liable for this tax?

The tax is to be paid by the operator of the tourist accommodation in question. In the absence of any recognised operator, the owner of the property will be regarded as the operator.  The owner of the property housing the operation, as well as the intermediary, are jointly and severally liable for payment of this tax.

An operator constitutes any natural or legal person operating a tourist accommodation, on behalf of whom tourist accommodation is being operated or who is authorised to operate under a legally valid operator agreement.

For tourist accommodations situated within the municipality's territory and for whom they promote or mediate, intermediaries must (upon written request) communicate the details of the operator and the address details of the tourist accommodation, as well as the maximum capacity of the tourist accommodation, to the officials designated by the municipality.

An administrative fine of €500 may be imposed on any intermediary who fails to comply with the submission of a written request.

Information form? How do I submit a declaration?

If you are a second home owner, you will receive an information form from the municipality. You must sign and date this, then return it to the Revenues (Ontvangsten) department of the municipal administration. If you rent out your property as a holiday home, you can submit a declaration using the same form.
You can also submit the declaration online.

What if I don’t submit a declaration?

If you do not declare any such rental, the local administration will apply the appropriate tax rate based on the data it has at its disposal.