COVID-19 VAT cut to help tourism
The Baltic state of Latvia is considering a bill in Parliament to reduce the Value Added Tax rate on hotel accommodation and catering from 21% to 5%. This would be in effect until 31 December 2022.
The bill reflects the ongoing financial difficulties of businesses in the tourism sector as a result of the ongoing COVID-19 crisis. Latvia would be following countries such as Germany, Belgium and the UK with similar tax breaks for the sector.
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