City tax (Bettensteuer / Kurtaxe)

City tax -- depending on the municipality called Bettensteuer or Kurtaxe -- is a municipal levy on paid overnight stays. The rate and the method of collection vary by federal state, municipality, and season. Business travelers are exempt in most municipalities -- if the documentation is done right.

What we see in practice: A city hotel in Munich charges Kurtaxe as a flat fee without checking the purpose of stay -- private and business guests alike. The tax-office back-claim across three years lands in the four figures. The administrative cleanup -- notices, correction entries, evidence per case -- ties up several days of work. This is not a one-off. It is the result of a collection practice nobody ever questioned. Segmenting taxable and exempt stays correctly is a routine step. Not a big project. But one that prevents liability.

Dull subject. Liability isn't.