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Russia cuts tourism VAT to zero from 20% – update

Tourist operators to gain VAT cut until 30 June 2027

Russian tour operators are to be included in temporary VAT zero-rating extended to tourism services last year.  The Ministry of Economic Development has proposed zero-rating their domestic and in-bound tourism services.

This will apply between 1 January 2023 and 1 July 2027.

March 2022 :Russia cuts VAT for tourism services and investment for five years in acknowledgement of surplus in industry following Ukraine invasion

The Russian government has cut the Value Added Tax rate for investors in tourist and hospitality facilities to zero. This will apply from the opening of relevant facilities, and be valid for twenty years. Existing facilities are also entitled to the reduced rate from now until 30 June 2027.

The reduced rates apply for investors who build, lease and manage tourist facilities – hotels and other accommodation facilities. However, additional services (laundry, sauna, fitness, parking, transfer, conference room, business center, etc.) provided in hotels and other accommodation facilities are excluded from the reduction.

Hotel accommodation and other short term accommodation will also be subject to zero-rating from 1 July 2022 for five years.  Currently, these services are subject to the standard VAT rate of 20%

According to the Federal Tourism Agency, with the introduction of zero VAT, tax expenses in Russia will approximately amount to 16-19 billion rubles for the provision of services for the provision of places for temporary accommodation in hotels and campsites.

Future global VAT / GST changes

Date Country VAT / GST  changes (click for details)
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2023 Europe European VAT registration thresholds & Intrastat
1 Apr 2023 Poland SLIM VAT 3; 20 reforms to Polish regime
1 Apr 2023 Botswana VAT rate returns to 14%
1 Apr 2023 Malaysia Low value goods sales tax reform delayed
1 Apr 2023 Egypt B2B e-invoicing registrations to complete
1 Apr 2023 Argentina E-commerce compliance simplifications
1 Apr 2023 Guatemala Latest round of taxpayers on e-invoicing
1 Apr 2023 New Zealand Ends requirement for tax invoice
1 Apr 2023 Argentina Ecommerce, gig & sharing economy platform VAT liabilities
1 Apr 2023 São Tomé and Príncipe Implements 15% VAT
1 Jun 2023 Egypt Digital services VAT compliance portal
1 Jul 2023 Jersey Foreign e-commerce and marketplaces into GST net
1 Jul 2023 Malaysia Phased introduction of e-invoicing - TBC
1 Jul 2023 Australia Peppol e-invoicing
1 Jul 2023 Philippines 12% VAT on foreign digital service providers
1 Jul 2023 US South Dakota end transaction threshold on sales tax
1 Jul 2023 Canada Marketplace GST reporting of user transactions
1 Sep 2023 Ireland Tourism VAT rate returns to 13.5%
1 Sep 2023 Thailand Raises VAT to 10%
1 Oct 2023 Japan Tax qualified invoices
1 Nov 2023 EU Tourism operators margin scheme reforms proposal
1 Jan 2024 EU EU permissions on e-invoicing removed
1 Jan 2024 EU DAC7 first marketplace reports due
1 Jan 2024 Spain Likely start of e-invoicing rollout
1 Jan 2024 Belgium VAT return rule changes
1 Jan 2024 Belgium Consolidation of reduced VAT rates
1 Jan 2024 Switzerland VAT rises to 8.1%
1 Jan 2024 Germany Restaurant and catering temporary VAT cut to 7% ends
1 Jan 2024 Portugal SAF-T Accounting becomes mandatory
1 Jan 2024 Greece Ends COVID-19 temporary reduced rates
1 Jan 2024 Greece myData live invoice reporting via ERPs
1 Jan 2024 Poland SLIM VAT 4 reforms
1 Jan 2024 Slovakia IS EFA e-invoicing for B2B and B2C
1 Jan 2024 Romania Full mandatory B2B e-invoicing
1 Jan 2023 Lithuania VAT registration threshold rises to €65,000
1 Jan 2024 Bahrain Potential e-invoicing implementation
1 Jan 2024 UAE Potential e-invoice implementation
1 Jan 2024 SIngapore Rise of GST to 9% to 2024
1 Jan 2024 Aruba Implements 12.5% VAT
1 Apr 2024 New Zealand 15% GST on gig and sharing economies digital platforms
1 Jul 2024 Belgium Phased B2B e-invoicing mandate
1 Jul 2024 Spain Certified electronic invoice software
1 Jul 2024 France E-invoice and e-reporting for B2B and B2C
1 Jan 2024 Poland Mandated e-invoicing introduced
1 Jul 2024 Bhutan Implementation of VAT
1 Jan 2025 EU Single VAT Registration in the EU - extension of OSS
1 Jan 2025 EU Marketplaces deemed supplier for EU sellers' VAT
1 Jan 2025 EU Accommodation & travel platforms deemed supplier for VAT
1 Jan 2025 EU EU IOSS mandated for marketplaces
1 Jan 2025 EU Call-off stock VAT simplification ends
1 Jan 2025 EU Harmonisation of B2B Reverse Charge rules
1 Jan 2025 EU Increased VAT rate setting freedoms
1 Jan 2025 EU VAT rate thresholds change foreign companies
1 Jan 2025 EU EU VAT rule changes on cross-border virtual events
1 Jan 2025 Croatia Mandatory B2B e-invoicing
1 Jan 2025 Latvia B2B e-invoices mandated
1 Jan 2025 France Mid-sized taxpayers included in e-invoicing mandate
1 Jan 2025 Indonesia VAT rate to rise 1% to 12%
1 Jan 2026 France Small businesses join e-invoicing mandate
1 Jan 2028 EU Digital Reporting Requirements including e-invoicing harmonisation
1 Jan 2028 EU Structured e-invoices supersede paper invoices
1 Jan 2028 EU EC Sales lists replaced by Digital Reporting Requirements


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