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Moldova cuts hotel VAT

  • Jul 29, 2018 | Richard Asquith

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%

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara