Putin urged to adopt a law on the abolition of VAT for tour operators before the end of the spring session

The law on the abolition of value added tax (VAT) for tour operators should be adopted before the end of the spring session of parliament, Russian President Vladimir Putin said at a meeting on tourism development.

During the meeting, the president pointed out that a number of agreed decisions had not been implemented, among them – the exemption of tour operators from paying VAT.

“I know that the relevant bill has been prepared by the government, it is important to consider and adopt it before the end of the current spring session of parliament,” he said (quote according to RIA Novosti).

The spring session of the Russian parliament ends at the end of July.

Putin instructed the government to exempt tour operators for domestic and inbound tourism from paying VAT following the results of the January meeting with the Cabinet. Tour operators, in accordance with the instructions, will be exempt from paying tax for the period from January 1, 2023 to June 30, 2027. Prime Minister Mikhail Mishustin was appointed responsible.

Earlier, Minister of Economic Development Maxim Reshetnikov made such a proposal. He noted that system operators began to lose competition either to small companies on a simplified tax system, or to platforms that work according to other schemes. June 11 Media reportedthat the draft law on the abolition of VAT for tour operators may be submitted to the government for consideration in the near future.

According to the estimates of the Main Directions of the Budgetary and Tax Policy of the Ministry of Finance, zero VAT for hotels will cost the budget more than 400 billion rubles. for 2022–2027 In addition, a reduced VAT rate of 10% is currently in effect for domestic flights through the airports of the Moscow air hub, as well as a zero rate for transportation outside this territory.