'Extraordinary' tax hike expected for German sauna operators
Operators of public saunas in Germany say they will struggle to make ends meet if the rate of value added tax they pay is increased from seven per cent to the full value of 19 per cent.
Access to saunas is soon to be classified a luxury by the German government, and will therefore taxable at a higher rate.
Key players in the pool, sauna, spa and heat experience manufacturing industry have gathered at the international trade fair for hydrothermal facilities, Interbad, in Stuttgart, Germany. Industry associations have come together at this forum to create a plan to campaign against the federal government’s decision to increase the tax rate on 1 July 2015.
Dr Christian Ochsenbauer, president of the German Association for the Recreational and Medicinal Bath Industry, told attendees of Interbad that the tax hike cannot be absorbed by operators due to the extremely high energy costs in the running of these thermal facilities. The increase in tax will therefore be paid by visitors in the form of higher admission prices, which in turn would lead to huge losses in customers. “Roughly 50 per cent of local government-run saunas in Germany could find themselves in financial difficulty as a result of the tax rate increase,” said Ochsenbauer.
“According to current information from the Federal Ministry of Finance (BMF), a majority of the highest fiscal authorities of the states have spoken out in favour of an increase in value added tax for admission to saunas,” said Rolf-A Pieper, president of Deutscher Sauna-Bund. “This is why we are now concentrating on a change to the Value Added Tax Act. A recently launched nationwide petition by guests of public saunas will also help in this respect.”
Saunas, swimming pools and the wellness industry as a whole are afforded more social importance than ever by Ulrich Kromer, president of Messe Stuttgart – the company that co-organises Interbad with DGfdB. “Swimming pools, saunas and spas are much more than bare figures against the background of cost and energy efficiency,” said Kromer. “They play a huge role in the physical and emotional wellbeing of many.”
The 65th edition of Interbad is currently taking place between 21-14 October, featuring 444 exhibiting companies. More than 40 presentations, seminars and discussions are held during the trade fair’s accompanying congress for pool and bath technology.
The event includes presentation topics surrounding energy-efficient design and construction and a forum called “Creating Atmospheres”. This forum has been developed with the support of Baden-Württemberg Chamber of Architects and the Association of German Interior Designers, in addition to the interior designers Schienbein & Pier Interior Architecture. This forum is aimed at hoteliers, architects, planners and private clients with presentation topics such as “Atmospheres made from water and light” or “Porcelain in the room”.
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