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Hospitality & Tourism

Policy Win: The Reduced VAT Rate of 7% on Temporary Accommodation Services Has Been Established for Hotels on a Permanent Basis

Policy Win: The Reduced VAT Rate of 7% on Temporary Accommodation Services Has Been Established for Hotels on a Permanent Basis

The American Chamber of Commerce in Ukraine welcomes the adoption of Draft Law #3851 regarding state support for the cultural sphere, tourism, and creative industries in the second reading by the Verkhovna Rada of Ukraine on November 4, 2020.

The Draft Law envisages establishing for hotels a reduced VAT rate of 7% on temporary accommodation services permanently.

The adoption of Draft Law #3851 and the VAT rate reduction for the tourism industry will help the hospitality and tourism sector continue operations during the COVID-19 pandemic and contribute to recovery after the crisis.

The Chamber Hospitality & Tourism Committee experts have been continuously advocating for establishing for hotels a reduced VAT rate of 7% on temporary accommodation services and thus welcome this positive step.