Fourth extension of COVID-related VAT subsidy for hotel and restaurant services
Moldova has extended for the fourth time its application of the reduced 6% VAT rate on hotel and restaurant services until 23 June 2022. It was due to run out on 24 April 2022. It was previously at the 12% reduced rate.
Reduced rate first introduced in June 2021
Moldova first cut Value Added Tax rate on hotel, restaurant and café services in June 2021. I was extended for the first time until 15 January 2022, then 24 April and now June 2022. The temporary rate is now 6% as opposed to the current 12%. The standard VAT rate is 20%.
The change applies to qualified hotels, restaurants and catering services. This will likely exclude alcohol services. The reduction applies for the period of the state of emergency related to the COVID-19 pandemic.
Many countries have applied similar sectorial tax breaks during the coronavirus pandemic. Countries include: Germany; Austria; Belgium; Ireland and the UK. Most of these countries have since rolled over cuts from 2020 into 2022 as lockdowns have been extended.
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