Moldova extends again cut in hospitality VAT rate to Dec 2023

Further extension of COVID-related VAT subsidy for hotel and restaurant services

Moldova has extended for the sixth time its application of the reduced 6% VAT rate on hotel and restaurant services until 1 December. 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 .  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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