Putin instructed to extend zero VAT for hotels until December 31, 2030

Russian President Vladimir Putin, following a meeting with members of the government, instructed to extend zero value added tax (VAT) for hotels until December 31, 2030. This is evidenced by a publication on the Kremlin website on November 18.

"The Russian government together with the State Duma <...> to ensure the introduction of <...> changes providing for the extension until December 31, 2030 inclusive of the possibility of applying the VAT tax rate of 0% for the implementation of services for the provision of places for temporary accommodation in hotels <...>", - stated in the message.

It is planned to make changes until April 1, 2025.

Russian Prime Minister Mikhail Mishustin and State Duma Chairman Vyacheslav Volodin have been appointed in charge.

Earlier, on November 15, the Ministry of Economic Development of the Russian Federation rejected the bill on non-refundable rates in hotels. At the same time, the Association of Tour Operators of Russia (ATOR) reported that representatives of the tourist business believe that this initiative could be profitable for both hotels and tourists.

The Ministry of Economic Development proposed to introduce non-refundable rates in Russian hotels on August 17. The idea was criticized in the Alliance of Travel Agencies (ATA). The vice-president of the organization Alexan Mkrtchyan stated that this initiative is beneficial for the hotel business, but the innovation will increase risks for tourists.