The American Chamber of Commerce in Ukraine welcomes passing the Draft Law #3851 on state support for the cultural sphere in the first reading by the Verkhovna Rada of Ukraine on September 15, 2020.
The Draft Law envisages the establishment of a reduced VAT rate of 7% for hotels on temporary accommodation services till January 1, 2023.
The adoption of the Draft Law #3851 and the VAT rate reduction for the tourism industry will help to stimulate investment and may contribute to additional budget revenues at all levels. Also, the potential increase in the flow of tourists will mean the creation of new jobs.
Experts of the Chamber Hospitality & Tourism Committee have been continuously advocating for establishing a reduced VAT rate of 7% on hotels and temporary accommodation services and welcome this positive step.