The State Duma adopted a law on the exemption of tour operators from VAT when selling tours in Russia

State Duma deputies adopted in the third, final, reading a law that exempts tour operators from value added tax when selling tours in Russia, should from the Duma electronic database.

According to the document, tour operators will be exempt from paying tax on transactions that were carried out from July 1, 2023. The measure will last until June 30, 2027.

March 7 Russian President Vladimir Putin instructed government to exempt tour operators for domestic and inbound tourism from paying VAT. Prime Minister Mikhail Mishustin was appointed responsible. At the end of June, President urged adopt this law before the end of the spring session.

This instruction was given following the results of the meeting with the government, which took place on January 24. Then with a proposal to reset VAT for tour operators spoke Economic Development Minister Maxim Reshetnikov during a meeting between the president and 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.

As Deputy Prime Minister Dmitry Chernyshenko noted at the end of June, zero VAT for tour operators will lead to the fact that the industry will receive an additional 4.2 billion rubles, which it will be able to direct to the development of tourism products, new destinations and infrastructure. According to him, this measure will also lead to a reduction in the cost of travel.