On 11 August 2006, the European Commission announced the award of contract for a study on reduced rates of VAT applied to goods and services in the Member States of the European Union to Copenhagen Economics ApS. The study should in principle be completed within 9 months from the award of contract.
As announced earlier, Directive 2006/18/EC provides that by 30 June 2007 at the latest the Commission shall present to the European Parliament and the Council an overall assessment report on the impact of reduced rates applying to locally supplied services, including restaurant services, notably in terms of job creation, economic growth and the proper functioning of the internal market, based on a study carried out by an independent economic think-tank. Once the European Commission receives the study mentioned above, it will use it (or not) to prepare the report it is due to give to the European Parliament and the European Council by end of June 2007. This report will be made public, but not necessarily the study.
Before June 2007, HOTREC and its member associations need to re-launch their campaign in favour of a reduced VAT rate for all hospitality services (accommodation and restaurant services). Therefore, EXCOM has agreed on the organisation of a HOTREC event on the subject matter in Budapest on Friday 19 January 2007. The objective will be to present to the European Commission and the national governments an overview of arguments/economic analyses/case studies developed at national level to be incorporated in the study mentioned above, so as to possibly influence the final report by the Commission to the European Parliament and the Council of Ministers.

Mr. Ákos Niklai, honorary president of the Hotel Association of Hungary, welcomes the EU's decision to draft such a survey. He says he is very proud that the organisation, instead of Brussels and Paris, chose a Budapest location for the venue of its important meeting, thanks to the effective lobbying of the HAH.  Source: Hungarian Travel and Tourism Headlines