1.1 Reduced rate of tax for goods and services provided by hotels.—Section 10(2) of the Act provides for a reduced rate of tax on the value of taxable goods and services provided by hotels.
1.2 Qualifying establishment.—The reduced rate of tax under section 10(2) of the Act applies to the value of taxable goods and services provided by hotels. An establishment is considered to be a hotel if it is a building or group of buildings in the State occupied together comprising not less than five bedrooms for the purpose of providing hotel accommodation for reward. Further, it is an establishment that provides sleeping accommodation facilities for individuals for overnight or short term not exceeding 45 calendar days. If in a rare circumstance a guest stays more than 45 calendar days, this does not cause the establishment to fail to be considered a similar establishment.