zero VAT rate may be introduced for tourism industry in Russia

In order to support Russian tourism industry at the state level, the issue of introducing tax breaks for businesses in this area is being considered considered.  We are talking about a zero VAT rate, the effect of which is expected to be fixed over the next five years.  Both those who already have tourist facilities and investors of the new ones will have a chance to count on it.

Deputy Prime Minister Dmitry Chernyshenko spoke about the the legal developments. According to him, the Cabinet of Ministers has already approved the initiative - it will affect investors who direct their funds to create tourist facilities in Russia.

Among the sectors that may count on the benefits, there are construction and rental sectors, as well as the management of hotels and other facilities that are designed to accommodate tourists.

The reduced VAT will be valid for five years from the moment the facility is put into operation. It is curious that not only new buildings fall under the measure, but also those that have been reconstructed, Lenta.ru reports. In the second case, the benefit will be provided until the end of June 2027.

According to Chernyshenko, the tax break will not only support the tourism industry, but will also allow it to develop further. According to the Deputy Prime Minister, the current situation in the world makes it possible to predict a significant increase in interest in recreation on the territory of our country.