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Moldova cuts hotel VAT


Moldova cuts hotel VAT

Moldova has proposed recategorising the VAT rate on hotel and restaurant services from the standard 20% rate to the reduced rate of 10%. The new rate will apply form October 2018.

Tourism tax subsidy

Few countries in the EU charge full VAT on such hospitality services.  Countries such as Ireland and Germany have long provided a tax subsidy to this key sector, with considerable boosts in job creation and international visitor numbers.

Country Hotel VAT rate Restaurant VAT rate Theatres, Cinema VAT rate Standard VAT rate
UK 20% 20% 20% 20%
Ireland 9% 9% 9% 23%
France 10% 10% 10% 20%
Germany 7% 19% 7% 19%
Italy 10% 10% 10% 22%
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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.