Zero VAT for hotels will be extended until 2030, and the list of preferential services will be expanded

CrimeaPRESS reports:

Russian hoteliers will be able to use the benefit for another 7 years. In addition, from September 1, 2024, the zero VAT rate will apply to a wider range of hotel services. This will make the industry more sustainable, attractive to investors and accessible to tourists.

The zero VAT rate for hotels in Russia will be maintained until 2030. This was announced by Deputy Prime Minister Dmitry Chernyshenko. The corresponding instruction has already been sent to the Ministry of Finance.

Let us recall that a zero VAT rate for hotels and a number of tourist facilities was introduced in Russia from July 1, 2022. This measure was a significant support for the industry, which has suffered greatly due to the coronavirus pandemic.

At the end of July 2023, tour operators working in the field of domestic and inbound tourism also received the benefit. The law applies to transactions made between July 1, 2023 and June 30, 2027.

And from September 1, 2024, hotels will be able to apply the zero VAT rate to an even wider range of services. This will include:

• Gym and fitness room services;
• Spa services (use of swimming pool, sauna, cosmetic procedures);
• Internet access services;
• Conference room service;
• Guarded parking and underground parking services.

The Commissioner for the Protection of the Rights of Entrepreneurs in the city of Sevastopol, Ilya Pesternikov, called the extension of the zero VAT rate for hotels an important step for the development of the tourism industry:

This is a strategically correct decision that will make the hotel business more sustainable and attractive for investment. In conditions where domestic tourism is becoming increasingly important, it is necessary to create all the conditions for the development of hotel infrastructure, improving the quality and availability of tourist services. I am confident that the extension of the benefit will attract new players to the industry, stimulate the construction of new and the modernization of existing hotels. Expanding the list of preferential services is another step towards business. This will allow hotels to reduce the tax burden and offer tourists more favorable prices– the press service quotes Ilya Pesternikov.

source: press service of the Commissioner for the Protection of Entrepreneurs’ Rights in the city of Sevastopol Ilya Pasternikov

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