Companies will be entitled to pay VAT at a rate of 0 percent

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From July 1, 2022, the Government of the Russian Federation plans to set a 0% VAT rate for hotels and services for providing temporary accommodation in other accommodation facilities.

In addition, the 0% VAT rate will be set for services for the provision of rental, management, on another right of the object of the tourism industry, put into operation after January 1, 2022.

The 0% VAT rate will be effective from the moment these facilities are put into operation for 5 years following the quarter in which the objects were put into operation.

To confirm the 0% VAT rate, it is necessary to submit a report on income from the provision of services, submit a document on commissioning, and a lease or management agreement for the facility.

That is, companies will not charge VAT, but they will be able to claim deductions and reimburse the VAT input tax from the budget.