The Ministry of Finance has prepared a draft law on the exemption of tour operators from VAT on trips around the Russian Federation

The Ministry of Finance of Russia, in pursuance of the instructions of the President, has prepared a bill exempting tour operators from VAT on domestic and inbound tourism. Such document published on the portal of regulatory legal acts.

It is proposed to establish a preferential tax regime from January 1, 2023 to July 30, 2027. Amendments are made to Part 2 of Art. 149 of the Tax Code of the Russian Federation.

The proposal to cancel VAT for tour operators was made by the head of the Ministry of Economic Development Maxim Reshetnikov during a meeting of the president with members of the government on January 24. He recalled that in July 2022, a similar support measure was adopted for hotels. According to him, the decision turned out to be “landmark” and increased investment in the industry. The initiative was also supported by the Ministry of Finance. According to Finance Minister Anton Siluanov, the reduction in revenues due to zero VAT will be “insignificant” – about 3-4 billion rubles. in year.

As a result, following the results of the meeting, Russian President Vladimir Putin instructed prepare a relevant bill. In addition, the head of state instructed to allocate 5.1 billion rubles. for the creation of infrastructure for the development of tourism in specially protected natural areas. Already in 2023, 1.4 billion rubles should be allocated for this, the list specifies. The order must be completed by June 1st.

At a meeting of the State Council Presidium on Tourism Development last fall, Putin declaredthat Russians with different income levels should have ample opportunities for travel and health promotion. In particular, citizens should be able to visit Russian health resorts, seaside resorts, Moscow and St. Petersburg, as well as get acquainted with Russian nature, including the Far East.

August 22, 2022 Prime Minister Mikhail Mishustin approved plan for the implementation of the Strategy for the development of tourism in Russia until 2035. The plan includes 65 measures to support the industry, including financing the development of tourism clusters in the regions, concessional lending for investment projects to create tourism infrastructure, grants to businesses for the construction and reconstruction of hotels, as well as support for the development of rural and ecological tourism.