The Russian government has extended the zero VAT rate for hotels until 2030

The Russian government has extended the zero value added tax (VAT) for hotels until 2030. This was announced on May 27 by Russian Prime Minister Mikhail Mishustin at the Board of the Commission for the Development of the North Caucasus.

"Recently, another decision was made to extend until the end of 2030 the right to apply a zero value—added tax rate for hotels and other traveler accommodation facilities," he said.

According to him, the restart of the sanatorium treatment system in the North Caucasus is planned to be completed within three years. At the same time, Mishustin stressed that over 400 billion of the 500 billion rubles of investments in the region are private funds.

Start small: the number of state-supported tourism SMEs has doubled

Restaurants, cafes and hotels attracted the most funding.

The order to extend zero VAT for hotels until December 31, 2030 was given by Russian President Vladimir Putin on November 18, 2024. The head of state appointed Mishustin and Chairman of the State Duma Vyacheslav Volodin as responsible.