Zero rate of value added tax on the expanded list of services in Russian hotels from September 1, 2024

As part of the ongoing efforts to support the tourism industry, the Government of the Russian Federation is making changes to the taxation of services provided in hotels and hotels. Starting from September 1, 2024, a zero rate of value added tax (VAT) has been introduced for a number of services, which should contribute to the more active development of tourist infrastructure and the creation of attractive offers for vacationers.

The innovation affects a wide range of services in the hotel sector, which will now be exempt from VAT. These services include:

Gym services
Spa services, including access to the pool
Cosmetic procedures
Visit to the bathhouse
Internet access services
Rent of conference rooms
Secure parking services

These measures are aimed at improving the competitiveness of hotels, increasing their attractiveness to domestic and foreign tourists, as well as stimulating investments in the renovation and development of hotel infrastructure.

Investment promotion policy

Additionally, in March 2022, a zero VAT rate was introduced for investors involved in the construction, leasing and management of tourist facilities. This measure is intended to stimulate the development and modernization of tourism infrastructure, which is a key aspect of the sustainable development of the industry.

Due to these changes, it is expected that investments in tourism infrastructure will increase, as well as the expansion and improvement of the quality of services provided by hotels. Hotels will have the opportunity to form more attractive package offers, which should attract more tourists and contribute to the growth of the economy as a whole.

The initiative to introduce a zero VAT rate for a wide range of hotel services is an important step towards supporting and developing the tourism industry in Russia. These measures are expected to bring significant benefits to both businesses and consumers, strengthening the country’s tourist appeal.

Decree of the Government of the Russian Federation dated 05/08/2024 No. 596 “On Amendments to the Decree of the Government of the Russian Federation dated November 18, 2020 No. 1860”.


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