“Resetting” the VAT rate for Russian hotels will be the most important and “breakthrough” decision for development of the tourism industry. This assessment of the decision was voiced by Rostourism. According to experts of the department, this will solve one of the main problems of domestic tourism – “an acute shortage of modern high-quality hotels.” And tourists, perhaps, will receive more affordable prices for accommodation.
The essence of the decision is as follows – for Russian hotels, the VAT rate is “nullified” for five years – namely, until June 30, 2027. This applies to already operating hotels. For new hotels that are put into operation, the rate is also canceled for five years – but starting from the opening date. According to experts, this will help the company to break even during this period.
“This decision, along with the measures of the national tourism project, will make the industry more competitive, attract new investors and solve one of the key problems of Russian tourism – an acute shortage of modern high-quality hotels,” said Zarina Doguzova, head of Rostourism, commenting on this decision.
She recalled that so far Russia had one of the highest VAT rates in the world for tourism and hotels. It was 20% formally, but in reality the figure was even higher. “At the same time, since 100% of the added value in hotels is formed directly in the organization, the tax burden on paying VAT becomes comparable to the turnover tax and reaches 30% of revenue, while the rate in the tourism industry is 10.5%. Such a tax burden makes the industry uncompetitive compared to other sectors of the economy and not attractive enough for investors,” Zarina Doguzova assured.
an important decision for the development of the industry over the past decades, which we all have been waiting for,” added the head of the Federal Tourism Agency.
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